Hexagon: US$1.45bn Deal for Waygate's Inspection Tools

Hexagon, a company specialising in measurement technologies, is set to acquire Waygate Technologies from Baker Hughes for US$1.45bn in a move that could transform how manufacturers inspect their products.

The deal brings together Hexagon's established expertise in external surface measurement with Waygate's advanced internal inspection capabilities, creating what could be described as a comprehensive quality control offering for the manufacturing sector.

While Hexagon has built its reputation on measuring component surfaces with extreme accuracy, Waygate Technologies operates in the non-destructive testing (NDT) space. This acquisition addresses a gap in the manufacturing process by combining external precision measurement with internal defect detection, potentially offering manufacturers a unified workflow for quality assurance.

Non-destructive testing capabilities

Waygate Technologies specialises in NDT, using advanced computed tomography and radiography to allow companies to inspect solid objects without breaking them open. This technology enables manufacturers to examine components such as jet engine blades or electric vehicle batteries for internal defects that would otherwise remain invisible until failure occurs.

The inspection data generated by Waygate's systems is processed through AI-driven analytics to create digital twins of physical assets. These virtual replicas provide detailed representations of components, combining dimensional accuracy with internal structural integrity information.

For manufacturers currently using separate providers for external measurements and internal inspections, this acquisition could mean access to an integrated solution. The combination of Hexagon's surface measurement expertise with Waygate's internal inspection capabilities creates a more comprehensive quality control workflow.

Anders Svensson, President and CEO of Hexagon, says: "This acquisition is a natural and exciting evolution of Hexagon Manufacturing Intelligence's strategy.

“By combining Waygate’s NDT expertise with Hexagon’s precision measurement portfolio, software capabilities and global infrastructure, we will create a uniquely integrated offering that helps our customers achieve higher quality, greater efficiency and improved confidence across the full product lifecycle.”

Maintenance and repair operations

The acquisition marks Hexagon's entry into the maintenance, repair and operations market, representing a strategic shift beyond its traditional focus on manufacturing processes. Waygate's remote visual inspection (RVI) tools, which consist of high-tech cameras mounted on flexible cables, enable technicians to inspect the interior of aircraft turbines while they remain attached to wings.

This capability extends Hexagon's role from purely manufacturing support to long-term asset maintenance. The maintenance sector offers different market dynamics to new production, with inspection work often mandated by regulatory requirements and tied to operational hours rather than production volumes.

This could provide Hexagon with stable, recurring revenue streams tied to service contracts rather than manufacturing cycles. The move into maintenance and repair operations represents a significant diversification of Hexagon's revenue base beyond traditional manufacturing inspection.

The integration of RVI capabilities with Hexagon's existing measurement technologies could enable predictive maintenance strategies, where inspection data informs maintenance schedules and helps prevent unexpected equipment failures across industrial sectors.

Strategic priorities and outlook

Hexagon has categorised different elements of the Waygate acquisition according to their strategic value. The company has identified Waygate's radiography and RVI units as "growth" and "profitability" assets, suggesting these will receive investment and integration priority.

Anders says: "We also see a significant opportunity to create value by applying Hexagon's operating model, which is built on driving closeness to customers via accountability and strong performance management, to Waygate's businesses and driving meaningful margin improvement over the medium term."

However, not all divisions will necessarily remain within the combined organisation. Hexagon has designated Waygate's Ultrasonic Testing and Imaging Solutions divisions as "Stability" assets and indicated it will explore "all strategic options" to improve performance in these areas.

The transaction is expected to complete in the second half of 2026. For the 1,500 employees at Waygate and the manufacturing customers using Hexagon's tools, the deal could signal a shift towards integrated quality control processes where inspection becomes a continuous activity rather than a discrete step at the end of a production line.