Hexagon’s Strategic Shift: Divesting Non-Core Assets for Growth

Hexagon AB Divests Non-Core Business Areas

Hexagon AB has taken a significant step towards streamlining its operations by selling off certain non-core business assets from its Safety, Infrastructure & Geospatial (SIG) division. This strategic divestment is designed to enhance the focus of Hexagon’s SIG division on its primary software offerings, especially in the thriving public safety domain. The company anticipates that concentrating on its core strengths will bolster its market presence as it prepares for future expansions.

Details of the Transaction

The sale primarily involves Bart & Associates (B&A), which has acquired multiple business assets from Hexagon's U.S. Federal sector. These assets cover various services ranging from IT support tailored for the federal market to geospatial data production services. Furthermore, B&A has also taken over the ruggedized hardware supply aimed at improving cyber assurance and situational awareness. In a related move, Hexagon has exited a smaller reseller segment dealing in APIs and relevant services targeting mapping and geospatial positioning issues. Remarkably, the products involved in this sale were unique to these businesses and were not marketed through other Hexagon channels.

Financial Impact of the Divestment

The businesses being divested contributed approximately 90 million USD in revenue in the previous year, and their profitability was competitive within similar service sectors. Although specific details about the transaction value have not been disclosed, it has been agreed with the buyers that confidentiality will be maintained. The process of carving out and deconsolidating these businesses is expected to take place during July 2025.

Quarterly Financial Updates and Strategic Direction

As Hexagon moves forward with this divestment, it will face certain financial adjustments in the second quarter of the upcoming year, particularly with non-recurring items such as costs tied to the forthcoming separation of Octave. These are projected to reach around 16 million EUR. The Board expects that, upon receiving necessary approvals, the process of separating and listing Octave as a standalone software and SaaS entity will be finalized within the first half of 2026.

Market Trends and Future Expectations

This strategic shift aligns with current market trends favoring concentrated service offerings, particularly in technology and software solutions. By divesting non-core areas, Hexagon is positioning itself to maximize the potential of its main product lines while adapting to rapidly changing industry demands.

Contact Information for Investors

Individuals seeking more information regarding this strategic change can reach out to the following contacts at Hexagon: Tom Hull, Head of Investor Relations, can be contacted at +44 7442 678 437, or via email at ir@hexagon.com. Alternatively, Anton Heikenström, the Investor Relations Manager, is available at +46 73 82 66 390, and can also be reached through the same email address.

Frequently Asked Questions

What assets did Hexagon AB divest?

Hexagon AB sold non-core business assets within its Safety, Infrastructure, and Geospatial division, primarily to Bart & Associates.

Why is Hexagon focusing on its core software portfolio?

The goal is to enhance its public safety business and capitalize on the growth potential within its primary software offerings.

What financial impact does the divestment have?

The divested businesses generated approximately 90 million USD in revenue, which aligns with Hexagon’s strategy to streamline its services.

When will the businesses be carved out?

The carve-out and deconsolidation of the divested businesses are expected to occur in July 2025.

Who can I contact for investor inquiries?

For investor relations, contact Tom Hull at +44 7442 678 437 or email ir@hexagon.com.

About The Author

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