Hexagon evaluating potential separation of its Asset Lifecycle Intelligence business
Hexagon AB announces plans to evaluate separating its Asset Lifecycle Intelligence (ALI) business through a Lex Asea distribution to shareholders. The new company ('NewCo') would include ETQ, Bricsys, and Utilities & Infrastructure businesses. NewCo, with approximately 5,000 employees, generated revenues of EUR 980 million with a 35% adjusted operating margin. The remaining Hexagon business has 19,600 employees with revenues of EUR 4,408 million and 28% adjusted operating margin. Mattias Stenberg, current ALI division President, would lead NewCo. The separation process is expected to take 12-18 months and requires board and shareholder approval.
Hexagon AB annuncia piani per valutare la separazione della sua attività di Asset Lifecycle Intelligence (ALI) attraverso una distribuzione Lex Asea agli azionisti. La nuova azienda ('NewCo') comprenderebbe le attività di ETQ, Bricsys e Utilities & Infrastructure. NewCo, con circa 5.000 dipendenti, ha generato ricavi di 980 milioni di EUR con un margine operativo rettificato del 35%. L'attività rimanente di Hexagon conta 19.600 dipendenti e ha ricavi di 4.408 milioni di EUR con un margine operativo rettificato del 28%. Mattias Stenberg, attuale Presidente della divisione ALI, guiderà NewCo. Il processo di separazione è previsto durare 12-18 mesi e richiede l'approvazione del consiglio e degli azionisti.
Hexagon AB anuncia planes para evaluar la separación de su negocio de Asset Lifecycle Intelligence (ALI) a través de una distribución Lex Asea a los accionistas. La nueva empresa ('NewCo') incluiría los negocios de ETQ, Bricsys y Utilities & Infrastructure. NewCo, con aproximadamente 5,000 empleados, generó ingresos de 980 millones de EUR con un margen operativo ajustado del 35%. El negocio restante de Hexagon cuenta con 19,600 empleados y ha generado ingresos de 4,408 millones de EUR con un margen operativo ajustado del 28%. Mattias Stenberg, actual presidente de la división ALI, liderará NewCo. Se espera que el proceso de separación tome de 12 a 18 meses y necesita la aprobación del consejo y de los accionistas.
Hexagon AB는 자산 라이프사이클 인텔리전스(ALI) 사업부를 주주에게 Lex Asea 배당을 통해 분리할 계획을 발표했습니다. 새로운 회사('NewCo')는 ETQ, Bricsys 및 유틸리티 및 인프라 사업을 포함할 것입니다. 약 5,000명의 직원을 가진 NewCo는 9억 8천만 유로의 수익을 창출했으며 조정된 운영 마진은 35%입니다. 남은 Hexagon 사업부는 19,600명의 직원이 있으며 수익은 44억 8천만 유로, 조정된 운영 마진은 28%입니다. Mattias Stenberg 현재 ALI 부문의 사장이 NewCo를 이끌 것입니다. 분리 과정은 12-18개월이 걸릴 것으로 예상되며 이사회와 주주의 승인이 필요합니다.
Hexagon AB annonce des projets d'évaluation de la séparation de son activité Asset Lifecycle Intelligence (ALI) par le biais d'une distribution Lex Asea aux actionnaires. La nouvelle société ('NewCo') inclurait les activités d'ETQ, Bricsys et Utilities & Infrastructure. NewCo, qui compte environ 5 000 employés, a généré des revenus de 980 millions d'EUR avec une marge opérationnelle ajustée de 35 %. L'activité restante de Hexagon compte 19 600 employés avec des revenus de 4 408 millions d'EUR et une marge opérationnelle ajustée de 28 %. Mattias Stenberg, président actuel de la division ALI, dirigerait NewCo. Le processus de séparation devrait prendre 12 à 18 mois et nécessite l'approbation du conseil d'administration et des actionnaires.
Hexagon AB kündigt Pläne an, die Trennung seines Asset Lifecycle Intelligence (ALI)-Geschäfts durch eine Lex Asea-Verteilung an die Aktionäre zu überprüfen. Das neue Unternehmen ('NewCo') würde die Geschäftsfelder ETQ, Bricsys und Utilities & Infrastructure umfassen. NewCo, mit etwa 5.000 Mitarbeitern, erzielte Einnahmen von 980 Millionen EUR bei einer um 35 % angepassten operativen Marge. Das verbleibende Hexagon-Geschäft hat 19.600 Mitarbeiter und erwirtschaftete Einnahmen von 4.408 Millionen EUR bei einer um 28 % angepassten operativen Marge. Mattias Stenberg, der derzeitige Präsident der ALI-Abteilung, wird NewCo leiten. Der Trennungsprozess wird voraussichtlich 12 bis 18 Monate dauern und bedarf der Genehmigung des Vorstands und der Aktionäre.
- NewCo reports strong 35% adjusted operating margin, higher than Hexagon's core business
- NewCo generated significant revenue of EUR 980 million
- Core Hexagon business maintains solid 28% adjusted operating margin
- Core Hexagon business reports substantial revenue of EUR 4,408 million
- Separation process could take up to 18 months, creating uncertainty
- Transaction subject to multiple approvals and regulatory conditions
Insights
This strategic separation represents a significant transformation for Hexagon, creating two distinct entities with compelling financial profiles. The core Hexagon business shows strong fundamentals with
The spin-off could unlock shareholder value by allowing each entity to pursue focused growth strategies and attract investors aligned with their specific business models. Hexagon's physical-digital integration focus and NewCo's pure digital asset management approach represent different risk-reward profiles and growth trajectories. The 12-18 month timeline suggests a well-planned execution, though regulatory approvals and market conditions will be critical factors.
This separation aligns with broader industry trends where companies are streamlining their focus to better compete in specialized markets. The split creates two technologically distinct entities: Hexagon focusing on physical-digital convergence with AI-powered sensors and reality capture, while NewCo specializes in digital twin technology and asset management software. This strategic move could accelerate innovation in both segments.
NewCo's positioning in the high-growth digital twin and asset management market, particularly with Fortune 500 clients, suggests strong growth potential. The inclusion of ETQ, Bricsys and Utilities & Infrastructure businesses with ALI creates a cohesive software portfolio targeting asset-centric industries. This technology-focused reorganization should enable more targeted R&D investments and faster market responsiveness.
NewCo is also expected to include the ETQ business (currently operating under the Manufacturing Intelligence division), the Bricsys business (currently operating under the Geosystems division) and the Utilities & Infrastructure business that is currently transitioning to ALI from the Safety, Infrastructure & Geospatial division, due to the high level of synergies between these businesses and ALI.
A separation of NewCo would be intended to create two scaled public companies with distinctive operational strategies and financial profiles that establish differentiated positioning for investors to fully leverage the capabilities and potential of each platform.
Hexagon
- Market leading portfolio of industrial and geospatial solutions
- Strong innovation capabilities tailored to serve large global customer base
- Solutions that leverage 3D data through AI-infused cloud platforms
- Creates best-in-class digital twins through automation and sensors
Excluding NewCo, Hexagon had approximately 19,600 employees as of September 30, 2024, and revenues of approximately
NewCo
- Leading software provider to Fortune 500 companies
- World class portfolio of solutions to manage digital projects and assets
- Leverages the digital twin to improve project and operational efficiency
- Creates actionable intelligence from large data sets
- Poised to capitalise on structural trends towards asset optimisation
NewCo had approximately 5,000 employees as of September 30, 2024, and revenues of approximately
NewCo would be led by Mattias Stenberg who is currently President of Hexagon's ALI division. Since joining Hexagon in 2009, Mattias has held various key leadership roles including Chief Strategy Officer and has played a vital role in strengthening Hexagon's strategic direction.
"Hexagon has established itself as a leader in the technology sector, grounded in the understanding that its business is anchored in two distinct worlds: the physical and the digital. Hexagon's expertise lies in the precise capture and measurement of real-world data, utilising advanced AI technology to enhance and optimise the physical and digital environment. Meanwhile, NewCo focuses on the digital realm, initiating the world's most complex projects in the design phase with a data-centric digital twin approach.
We believe Hexagon and NewCo will increasingly move in different directions so operating both as standalone companies with a laser focus on each of their respective target markets and technologies will significantly strengthen competitive advantages and add value for both organisations." says Ola Rollén, Chairman of the Board for Hexagon.
"The potential separation of NewCo offers a unique opportunity to create two global leaders, each poised to thrive. For Hexagon, this means sharpening our focus on capturing and integrating real-time reality data into upstream software and AI-enabled autonomous platforms. This strategic shift will allow us to deliver more specialised solutions, improve capital efficiency, and unlock new growth opportunities. It positions Hexagon to accelerate innovation, empower employees, and create greater value for our customers and shareholders," said Paolo Guglielmini, President and CEO Hexagon.
"ALI has grown strategically from a design & engineering technology player into an industry-leading, internationally recognised digital solution provider to asset-centric industries. We have, in the last 7 years, more than doubled our revenue and established a compelling business with an acclaimed product portfolio. I believe additional focus and targeted investment would help further accelerate innovation and revenue growth." says Mattias Stenberg.
Process Details
Hexagon will provide additional information regarding the separation, spin-off and listing process, as well as future management team and board of directors for NewCo, at an appropriate time. It is the board's current expectation that the separation process will take 12 to 18 months to complete.
The separation, spin-off and listing would be subject to the approval of the board and shareholders, as well as being subject to other conditions and regulatory approvals. There can be no assurances a separation, spin-off or listing will occur.
For further information, please contact:
Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, ir@hexagon.com
Anton Heikenström, Investor Relations Manager, Hexagon AB, +46 8 601 26 26, ir@hexagon.com
Hexagon is the global leader in digital reality solutions, combining sensor, software and autonomous technologies. We are putting data to work to boost efficiency, productivity, quality and safety across industrial, manufacturing, infrastructure, public sector, and mobility applications. Our technologies are shaping production and people related ecosystems to become increasingly connected and autonomous – ensuring a scalable, sustainable future.
Hexagon's Asset Lifecycle Intelligence division is a significant software provider to Fortune 500 companies that helps clients design, construct, operate, maintain and secure more profitable, safe, and sustainable industrial facilities around the world. The division's core technologies help produce actionable insights that enable better decision-making and intelligence across the asset lifecycle of capital-intensive projects, leading to improvements in safety, quality, efficiency, and productivity, which contribute to Economic and Environmental Sustainability. Key solution areas include Design and Engineering (conceptual design and detailed engineering tools), Project Planning & Execution (construction, fabrication and supply chain management) and Operations & Maintenance (enterprise asset management, predictive maintenance and OT cyber security software).
Learn more at hexagon.com and follow us @HexagonAB.
Important information:
This is information that Hexagon AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:01 CET on 25 October 2024.
This communication does not constitute an offer to exchange, sell or buy securities. There shall not be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This communication contains forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the measurement field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Hexagon's management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by Hexagon's management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Hexagon disclaims any intention or obligation to update these forward-looking statements. Forward-looking statements are not guarantees of future performance and the actual results of Hexagon's operations and the development of the markets and the industry in which Hexagon operates or other outcomes suggested by such forward-looking statements (including any outcomes of a separation, a spin-off or a listing and any related business, financial, tax, regulatory or other implications, or differences between the existing ALI division and any separated business) may differ materially from those described in, or suggested by, the forward-looking statements contained in this communication.
[1] As the exact scope of NewCo has not yet been finally determined, the actual results of NewCo, and Hexagon excluding NewCo, may vary from the preliminary unaudited figures reflected herein.
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