Hexagon Plans to Spin Off Asset Lifecycle Intelligence Division
Hexagon AB has set the wheels in motion for a major corporate restructuring, with plans to spin off its Asset Lifecycle Intelligence (ALI) division and related businesses into an independent company, referred to as “NewCo.”
This strategic move, first announced on 25 October 2024, aims to enhance the growth potential of both Hexagon and NewCo by allowing them to focus on their distinct market strategies.
Following a thorough review, Hexagon’s Board of Directors has instructed management to begin preparations for the spin-off, which will be executed through a Lex Asea distribution. The Board intends to propose the listing of NewCo’s shares at a shareholder meeting in early 2026, contingent upon prevailing market conditions and regulatory approvals.
NewCo to List on a U.S. National Exchange
Reflecting its strong U.S. footprint, Intergraph’s heritage as a former U.S. public company, and the location of its leadership team, NewCo is expected to be listed on a major U.S. securities exchange. To facilitate a smooth transition, Hexagon will establish a temporary Swedish Depository Receipt (SDR) programme via Nasdaq Stockholm, ensuring existing shareholders can participate in potential value creation before the full transition to the U.S. market.
“After an extensive review, we remain convinced that a spin-off allows each company to capitalise on their competitive advantages, execute on their increasingly distinct strategies, and leverage their greater agility to accelerate growth and benefit from clear structural tailwinds. We are excited by what’s to come for each of these companies as well as the value we believe a spin-off will create for our employees, customers, and shareholders,” said Ola Rollén, Chairman of the Board for Hexagon.
Expansion of NewCo’s Business Scope
Initially, the spin-off was set to include only Hexagon’s Utilities & Infrastructure business within the Safety, Infrastructure & Geospatial (SIG) division. However, following further evaluation, Hexagon has decided to expand the scope to include the entire SIG division. Additionally, the ETQ business (currently under the Manufacturing Intelligence division) and Bricsys (from the Geosystems division) will also be integrated into NewCo.
“The inclusion of SIG in the NewCo perimeter, as well as reflecting a shared history, presents significant financial and operational synergies. SIG’s diversified and sticky global customer base expands NewCo’s addressable market and adds more software solutions designed to transform complex data into powerful insights and analytics. The expanded NewCo perimeter also means a tighter focus for Hexagon on its core mission, to accelerate our leadership in measurement technologies and develop increasingly autonomous solutions for our customers across all end markets,” added Rollén.
A Pureplay SaaS Powerhouse
NewCo will emerge as a dedicated software and SaaS provider, offering end-to-end asset lifecycle intelligence solutions. By focusing on data-driven strategies, it will empower industries to optimise operations, enhance safety, and improve infrastructure management. NewCo’s independent structure will provide greater flexibility to pursue:
- An accelerated transition to SaaS and recurring revenue models
- Enhanced agility in executing its business strategy
- A distinct financial structure for mergers and acquisitions
Mattias Stenberg, currently President of Hexagon’s ALI division, has been appointed to lead NewCo as CEO.
“NewCo is uniquely positioned with software and services offerings for both industry and the public sector, and the entire organisation is incredibly excited to leverage our scale, product portfolio, and collective expertise to drive the next phase of growth as a standalone company. We’re confident that we’re ideally placed to capitalise on both organic and inorganic opportunities in the market, and we look forward to what lies ahead,” said Stenberg.
As of December 2024, NewCo—including SIG, ETQ, and Bricsys—boasted a workforce of approximately 7,200 employees and generated revenues of around EUR 1.448 billion, with an adjusted operating margin (EBIT1) of 31%, before standalone costs.
Leadership Changes Ahead
In line with the restructuring, Steven Cost, President of SIG, has announced his retirement, effective at the end of Q1 2025.
“It has been a privilege leading our division and serving on the group management team during my tenure with Hexagon. I believe the future is great for the NewCo spin-off, and that including the SIG division will be a positive move for our customers and partners,” said Cost.
Rollén expressed gratitude for Cost’s contributions, stating: “I would like to thank Steven for his commitment to Hexagon over the last 18 years. I wish him every success and happiness in his retirement.”
Hexagon’s Future Post-Spin-Off
With NewCo spun off, Hexagon will continue to cement its position as a global leader in precision measurement technologies, bridging the digital and physical worlds through metrology, reality capture, and AI-driven analytics.
As industries demand greater efficiency, sustainability, and automation, Hexagon’s strategic focus will be on:
- Robotic sensors and software
- AI-powered analytics
- 3D digital environments for construction, manufacturing, and mining
Following the separation, Hexagon (excluding NewCo) will retain approximately 17,600 employees and generate an estimated EUR 3.953 billion in revenues, with an adjusted operating margin of 29%.
The Road to 2026
The spin-off remains subject to approval by shareholders, regulatory authorities, and market conditions. Should all necessary consents be obtained, Hexagon anticipates finalising the separation and listing process in the first half of 2026. Further details on separation costs and transition plans will be provided in due course.
While the final shape of NewCo is still evolving, one thing is certain—both Hexagon and its new counterpart are positioning themselves for long-term success in an increasingly digital and autonomous world.
