Hexagon moves into non-destructive testing with Waygate Technologies acquisition

In what Hexagon describes as creating “a complete measurement platform”, extending quality assurance from the surface of a component to its interior geometry, the company has signed a definitive agreement to acquire Waygate Technologies from Baker Hughes. Waygate is a leading provider of non-destructive testing (NDT) solutions. The deal marks a significant expansion of Hexagon’s Manufacturing Intelligence (MI) business into the NDT market, a sector the company views as a natural extension of its core precision measurement capabilities.

Central to Hexagon’s investment case is a clear margin improvement pathway. Waygate operates through four business units. Its Radiography division, which Hexagon has designated for profitability improvement, offers 2D X-ray and 3D computed tomography (CT) systems used for internal part inspection and defect detection across aerospace, automotive and battery manufacturing.

Waygate’s portfolio of X-ray and CT systems integrates directly with Hexagon’s existing metrology hardware, CT analysis software and data management platforms, including its Volume Graphics visualization tools.

Radiography and remote visual inspection

Waygate’s Remote Visual Inspection (RVI) business, earmarked for growth, holds the global number-one position in high-end video borescopes, primarily serving aerospace maintenance, repair and overhaul (MRO) customers. This will give Hexagon a foothold in the aerospace MRO sector, a recurring revenue market driven by fleet utilization and regulatory requirements rather than capital expenditure cycles.

Two further divisions, Ultrasonic Testing and Imaging Solutions, are classified as stability assets, with Hexagon indicating it will explore strategic options to improve their performance.

Creating value

Anders Svensson, president and CEO of Hexagon, sees the acquisition as a significant opportunity to create value by applying Hexagon’s operating model to Waygate’s businesses, with meaningful margin improvement expected over the medium term.

Waygate’s current margins sit below those of Hexagon’s broader MI portfolio, and the company intends to close that gap through manufacturing localization – particularly by leveraging its existing China infrastructure to produce CT systems closer to market, alongside cross-selling opportunities into its global installed customer base.

Evolution of manufacturing intelligence

“This acquisition is a natural and exciting evolution of Hexagon Manufacturing Intelligence’s strategy,” says Svensson. “Waygate Technologies brings world-class inspection technology and deeply loyal customer relationships in markets that are highly complementary to our own. I look forward to welcoming the Waygate team to Hexagon and working together to drive future profitable growth.”

Headquartered in Germany and operating across 25 locations worldwide, Waygate Technologies employs approximately 1,500 people and generates around US$630 million in annual revenue. The business serves customers across aerospace, automotive, energy and industrial manufacturing, with a global footprint spanning North America (30% of revenue), Europe (28%), Asia (34%) and the rest of the world (8%).