Hexagon Buys Waygate Technologies in $1.45B Deal
▼ Summary
– Hexagon has agreed to acquire Waygate Technologies from Baker Hughes in an all-cash deal valued at approximately $1.45 billion.
– Waygate is a global leader in non-destructive testing, generating about $630 million in annual revenue with 1,500 employees across 25 locations.
– The acquisition will add Waygate’s computed tomography, radiography, and remote visual inspection technology to Hexagon’s Manufacturing Intelligence division.
– For Baker Hughes, the sale represents portfolio management, allowing capital redeployment toward its core rotating equipment and decarbonization priorities.
– The transaction is expected to close in the second half of 2026, pending regulatory approvals.
In a major strategic acquisition, Hexagon has announced a definitive agreement to purchase Waygate Technologies from Baker Hughes for approximately $1.45 billion in cash. The deal, slated to close in the second half of 2026 pending regulatory approval, will significantly bolster the measurement and sensor technology group’s industrial inspection capabilities. Waygate, a leader in non-destructive testing (NDT), reported annual revenue of roughly $630 million in fiscal 2025 and employs about 1,500 people across 25 global sites.
This acquisition brings over 130 years of combined heritage from renowned legacy brands like Krautkämer and Agfa NDT directly into Hexagon’s Manufacturing Intelligence division. Waygate’s portfolio, which includes computed tomography (CT), radiography, and remote visual inspection, complements Hexagon’s existing strengths. While Hexagon excels at external surface measurement, Waygate’s technology enables critical analysis of a component’s internal structure, allowing for defect detection without damaging the part.
Financially, the transaction values Waygate at about 2.3 times its annual revenue. Hexagon intends to fund the purchase through available cash and existing debt. The company has already categorized the incoming businesses within its operating model, labeling Radiography as a ‘Profitability’ asset and Remote Visual Inspection, where Waygate was recently named Frost & Sullivan’s Global Company of the Year, as a ‘Growth’ asset. This signals active investment in these areas. Conversely, the Ultrasound and Imaging Solutions units are classified as ‘Stability’ assets, indicating they will undergo strategic review and could potentially be divested.
For Baker Hughes, the sale represents a strategic move to streamline its portfolio. CEO Lorenzo Simonelli stated the transaction reinforces the company’s commitment to creating long-term shareholder value. Exiting the $630 million NDT business allows Baker Hughes to sharpen its focus and redirect capital toward its core operations in rotating equipment and decarbonization technologies within its Industrial & Energy Technology segment. J. P. Morgan acted as the exclusive financial advisor to Baker Hughes on the deal.
Waygate serves a diverse global client base, with revenue distributed across Asia (34%), North America (30%), and Europe (28%). Its industrial inspection solutions are critical for sectors including aerospace, automotive, energy, and advanced manufacturing, where verifying internal integrity is paramount for safety and quality.
(Source: The Next Web)