Hexagon AB to Spin Off Asset Lifecycle Intelligence Division
Hexagon Plans Spin-Off for Enhanced Focus and Growth
Hexagon AB is embarking on an exciting journey towards the spin-off of its Asset Lifecycle Intelligence (ALI) division and associated businesses. This significant decision, made by the Board of Directors, aims to separate ALI into a new entity that will allow both Hexagon and the new organization, referred to as NewCo, to focus on their respective strengths and strategies. The intent is to propose the distribution of NewCo's shares at a shareholders' meeting, likely set for early 2026, contingent on favorable conditions.
Strategic Reasons Behind the Spin-Off
The decision to create NewCo came after thorough evaluations of Hexagon's structure and market opportunities. It’s aimed at empowering both Hexagon and NewCo to enhance their growth potential. As noted by Ola Rollén, Chairman of the Board, this strategy will not only highlight each company's competitive advantages but will also promote agile decision-making to capitalize on market trends. NewCo is anticipated to attract a robust customer base, enhancing shareholder value.
Expanded Business Scope of NewCo
In a refinement of the earlier communicated plans, the new entity will now encompass the entirety of Hexagon's Safety, Infrastructure & Geospatial (SIG) division, moving beyond just the Utilities and Infrastructure sectors. This expanded scope includes the integration of the ETQ business, currently part of Hexagon's Manufacturing Intelligence division, and the Bricsys business from its Geosystems division. This strategic expansion is expected to cultivate operational synergies and extend the market reach of NewCo.
NewCo's Business Model and Leadership
NewCo will transition into a pureplay software and SaaS company, providing advanced asset lifecycle intelligence, infrastructure solutions, and geospatial capabilities. With a focus on data-centric strategies, NewCo aims to enhance how customers manage their assets, resulting in improved operational insights. Mattias Stenberg, who currently leads Hexagon’s ALI division, is set to head NewCo, ensuring a continuity of vision and leadership as the company pivots into this new phase.
Impacts of Leadership Changes
In conjunction with this spin-off, there are also changes in leadership. Steven Cost, President of the SIG division, plans to retire at the end of the first quarter of the upcoming business year. Steven remarked on his tenure, emphasizing the positive future he envisions for the NewCo spin-off. His retirement opens the pathway for NewCo to bring in fresh leadership that aligns with its operational objectives and strategies.
Hexagon's Continued Role
As Hexagon prepares for the spin-off, it remains focused on advancing its core mission in measurement technologies across various industries. The company is well-positioned to leverage upcoming technological advancements and customer needs, maintaining its commitment to improving quality and operational efficiency. Hexagon's ongoing projects, particularly in robotics, 3D digital environments, and AI-enhanced analytics, continue to be its main focus areas, aiming to facilitate better customer solutions and market responsiveness.
Shareholder Benefits and Future Expectations
For current shareholders, the spin-off is expected to unlock significant value, allowing them to invest in two distinct yet complementary businesses. The separation is anticipated to be seamless, with further details on costs and other important matters forthcoming from the board. Looking ahead, Hexagon and NewCo aim to maximize both organic growth and strategic acquisitions, propelling their respective missions and ensuring robust market engagement.
Frequently Asked Questions
What is the purpose of Hexagon's spin-off?
The spin-off aims to separate the Asset Lifecycle Intelligence division, allowing both Hexagon and NewCo to focus on their unique strategies and growth opportunities.
Who will lead NewCo after the spin-off?
Mattias Stenberg, currently the President of Hexagon's ALI division, will lead NewCo, ensuring continuity and strategic vision.
How does the expanded scope of NewCo benefit shareholders?
The inclusion of the entire SIG division enhances operational synergies and broadens market reach, potentially increasing shareholder value.
When is the proposed listing of NewCo's shares expected?
The listing is aimed for early 2026, depending on market conditions and regulatory approvals.
What role will Hexagon play after the spin-off?
Hexagon will continue to focus on its core mission in measurement technologies, enhancing growth while benefiting from the strategic advantages of the separate entities.
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