Hexagon closes $1.45B Waygate deal, betting on margin turnaround
What's the deal? Hexagon has completed its $1.45 billion all-cash acquisition of Waygate TechnologiesDealroom has a profile for this one. Try Dealroom → from Baker HughesDealroom has a profile for this one. Try Dealroom →, buying the non-destructive testing specialist on a cash and debt-free basis. Waygate, with roughly 1,500 employees across 25 locations, makes industrial radiography, computed tomography, remote visual inspection, and ultrasonic testing systems.
What's the endgame? The deal pushes Hexagon's Manufacturing Intelligence unit into non-destructive testing and the maintenance, repair and operations market. Combining Waygate's CT systems with Hexagon's Volume GraphicsDealroom has a profile for this one. Try Dealroom → software and metrology portfolio gives it an end-to-end offering to inspect a component's interior alongside its exterior.
Why now? Waygate generated about $630 million in revenue in fiscal 2025 and consolidated into Hexagon on November 1. For Baker Hughes, the sale delivers roughly $1.45 billion in pre-tax cash and is part of a broader portfolio reshaping to strengthen its balance sheet.
By the numbers: Hexagon, which reported net sales of about €3.7 billion, financed the purchase with cash and existing debt facilities, leaving pro forma leverage near 1.4x net debt to EBITDA. It estimates transaction, carve-out, and integration costs of about €50 million.
What could go wrong? Waygate's margins are the catch. On a fiscal 2025 pro forma basis, the deal dilutes Manufacturing Intelligence's margin by about 300 basis points and group margin by about 150 basis points.
Hexagon's stated plan is to lift Waygate's profitability toward Manufacturing Intelligence's 21–24% EBITAC target through its operating model, localised manufacturing, cross-selling, and potential portfolio optimisation. The margin turnaround, not the closing, is the real test.
What they're saying: "Waygate Technologies brings world-class inspection technology and loyal customer relationships," said Anders Svensson, Hexagon's chief executive officer, adding the company looks to "improve performance over the medium term."
The signal: Industrial measurement players are consolidating inspection across the product lifecycle, pairing hardware with analysis software. Whether that convergence pays off here depends less on the deal itself than on Hexagon's ability to fix a comparatively low-margin business it just paid $1.45 billion to own.
Read more: news.cision.com
Image credit: Waygate Technologies
