Hexagon Gains X-Ray Vision With $1.45 Billion Waygate Technologies Acquisition — Expanding Precision Measurement From Surface to Interior
AI / AI Tech Trends | 4 min read
Hexagon AB (Nasdaq Stockholm: HEXA B), the global leader in measurement technologies with approximately 24,800 employees across 50 countries and net sales of approximately €5.4 billion, has signed a definitive agreement to acquire Waygate Technologies from Baker Hughes (NASDAQ: BKR) in an all-cash transaction valued at approximately $1.45 billion. The deal — expected to close in the second half of 2026, subject to regulatory approvals — marks a significant expansion of Hexagon's Manufacturing Intelligence (MI) Business Area into the non-destructive testing (NDT) market, extending the company's precision measurement capabilities from the exterior surface of a component to its interior geometry. Hexagon will finance the acquisition through cash and existing debt capacity.
"This transaction marks another significant milestone and reinforces our ongoing commitment to long-term value creation for our shareholders. By sharpening our focus on our core strengths — rotating equipment, flow control, digital, production optimisation and decarbonisation — we are strategically positioning Baker Hughes to deliver higher returns while accelerating investment in high-growth areas that are aligned with our long-term vision."
— Lorenzo Simonelli, Chairman and CEO, Baker Hughes
What Waygate Brings: 130 Years of NDT Heritage and $630M in Revenue
Waygate Technologies is headquartered in Hürth, Germany, operates across 25 locations worldwide, and employs approximately 1,500 people. Built on more than 130 years of combined NDT heritage, the business generated approximately $630 million in revenue at a 10% EBIT margin in fiscal year 2025 — with a global footprint spanning North America (30% of revenue), Asia (34%), Europe (28%), and the rest of the world (8%). Waygate comprises four business units spanning the full NDT technology spectrum: Radiography — a globally market-leading portfolio of 2D X-ray and 3D computed tomography (CT) systems for internal part inspection, dimensional metrology, and defect detection; Remote Visual Inspection (RVI) — video probe and borescope systems enabling inspection of confined and hard-to-access areas; Ultrasonic Testing — used for measuring wall thickness, detecting cracks, and characterising material properties; and Imaging Solutions. The market-leading Radiography and RVI platforms together generated approximately $330 million in revenue at a 16% EBIT margin — offering a clear value creation pathway to drive margins toward Hexagon MI Business Area averages.
Strategic Logic: From Surface Metrology to Interior Inspection
For Hexagon, the acquisition addresses a structural gap in its precision measurement portfolio. Hexagon's existing coordinate measuring machine (CMM) and metrology software capabilities are highly complementary to Waygate's CT and radiography systems — and customers in sectors including aerospace, automotive, and battery manufacturing increasingly require both surface and internal inspection as part of a unified quality workflow. Waygate's CT platforms also integrate directly with Hexagon's industry-leading Volume Graphics CT analysis and visualisation software — creating a tightly coupled hardware-software inspection system. Hexagon classifies Waygate's Radiography and RVI businesses as Profitability and Growth assets within its operating model, combining best-in-class NDT hardware with Hexagon's leading CT analysis, visualisation, and production quality software. The Ultrasonic Testing and Imaging Solutions units are classified as Stability assets, with Hexagon pursuing strategies to improve performance including potential strategic reviews. Value creation levers include strategic actions, manufacturing optimisation, China localisation, and revenue synergies across the combined customer base. The acquisition also positions Hexagon as a credible, well-resourced participant in the broader NDT market — with scale and technology depth to pursue further bolt-on opportunities across adjacent inspection modalities.
Key Takeaways
- • Hexagon AB has signed a definitive agreement to acquire Waygate Technologies from Baker Hughes (NASDAQ: BKR) in an all-cash transaction valued at approximately $1.45 billion — expected to close in the second half of 2026, subject to regulatory approvals. Financed through cash and existing debt capacity. Marks a major expansion of Hexagon's Manufacturing Intelligence Business Area into the NDT market.
- • Waygate Technologies: headquartered in Hürth, Germany; 130+ years of combined NDT heritage; ~1,500 employees; 25 global locations; ~$630M FY2025 revenue at 10% EBIT margin; North America 30%, Asia 34%, Europe 28%. Four business units: Radiography (2D X-ray and 3D CT), Remote Visual Inspection (video probe and borescope), Ultrasonic Testing, and Imaging Solutions. Radiography + RVI: ~$330M revenue at 16% EBIT margin.
- • Strategic logic for Hexagon: extends precision measurement from surface to interior geometry — completing the quality assurance workflow for aerospace, automotive, and battery manufacturing customers who need both CMM metrology and internal CT/radiography inspection. Waygate CT platforms integrate with Hexagon's Volume Graphics CT analysis and visualisation software, creating a tightly coupled hardware-software inspection platform.
- • Asset classification and value creation: Radiography and RVI classified as Profitability and Growth assets (margin improvement pathway toward Hexagon MI Business Area averages); Ultrasonic Testing and Imaging Solutions as Stability assets (performance improvement strategies including potential strategic reviews). Value creation levers: manufacturing optimisation, China localisation, and revenue synergies across the combined customer base.
- • Baker Hughes' rationale: the sale is consistent with its strategic portfolio reshaping — sharpening focus on core strengths (rotating equipment, flow control, digital, production optimisation, decarbonisation) and redeploying capital to higher-growth areas. The divestiture follows Baker Hughes' recently announced $13.6 billion all-cash acquisition of Chart Industries and the sale of its precision sensors and instrumentation line to Crane for $1.15 billion.