Hexagon, a company specializing in measurement technologies, has signed a definitive agreement to acquire Waygate Technologies, a provider of non-destructive testing solutions, from Baker Hughes for $1.45 billion.
Waygate Technologies serves customers across aerospace, automotive, energy and industrial manufacturing sectors, and brings with it a portfolio of inspection technologies that integrate with Hexagon's existing measurement hardware, CT analysis and visualization software and production quality and data management platforms.
The acquisition marks an expansion of Hexagon's Manufacturing Intelligence (MI) Business Area into the NDT market — a space Hexagon said it views as a natural evolution of its core precision measurement capabilities, extending quality assurance from the surface of a component to its interior geometry.
Waygate Technologies is headquartered in Germany and operates across 25 locations worldwide. The business employs approximately 1,500 people and generates approximately $630 million in annual revenue.
Waygate comprises four business units. Consistent with Hexagon's operating model — which assigns the strategic mandates of Growth, Profitability or Stability to each Division reflecting their current performance, the businesses are classified as follows:
- Radiography (Profitability): A globally market-leading portfolio of 2D X-ray and 3D computed tomography (CT) systems used for internal part inspection, dimensional metrology and defect detection. Waygate's CT systems are known for their superior image quality and are supported by deep in-house capabilities including proprietary X-ray tube manufacturing. Key end markets include aerospace, automotive, electronics, battery manufacturing and materials science. Radiography is assigned a Profitability mandate given the significant margin expansion opportunity available through manufacturing localisation and cross-sell synergies with Hexagon's existing CMM and software portfolio.
- Remote Visual Inspection (RVI) (Growth): The global number-one provider of high-end video borescopes and remote visual inspection technology, combining premium hardware with advanced 3D measurement and defect characterisation capabilities. The RVI business primarily serves aerospace MRO customers, enabling inspection of aircraft jet engines without the need for disassembly — a highly specialised application with significant barriers to entry. RVI has a strategic Growth mandate reflecting its already strong margin profile and market-leading position.
The following two businesses are classified as Stability assets within Hexagon's business portfolio either due to lack of strategic fit or current financial performance. Hexagon will pursue strategies to improve performance across these businesses, including exploring all strategic options:
- Ultrasonic Testing (UT): A broad offering of conventional and phased array ultrasonic inspection solutions, spanning portable handheld devices and stationary automated systems. Products are used for subsurface flaw detection, corrosion monitoring, weld inspection and composite material testing across industrial, aerospace and energy applications.
- Imaging Solutions: A provider of industrial X-ray films, digital radiography systems, computed radiography scanners and supporting software for image analysis and data management. The business serves oil and gas, power generation, aerospace and industrial customers requiring high-quality 2D radiographic inspection solutions.
