Tag: Hexagon AB

Hexagon AB, a global leader in digital reality solutions combining sensor, software and autonomous technologies, today announced the acquisition of iConstruct Pty Ltd, a provider of award-winning Building Information Modelling (BIM) software used in commercial, infrastructure and industrial construction.

Its flagship solution, iConstruct Pro, is a proven construction automation tool with hundreds of global customers that have relied on its benefits for years. It enables integration, accessibility and control of the wealth of design and construction information held within different BIM models, combining all data into a single 3D model. Different stakeholders can filter and tailor the model to suit their specific needs, providing a fully-integrated and efficient approach to construction planning and execution.

“Hexagon has long been focused on creating smart digital realities that put data to work in new ways. By blurring the lines between the digital and physical worlds, we can offer customers a complete line of sight to ever-changing situations,” says Hexagon President and CEO Ola Rollén. “Not only does iConstruct add an easy-to-deploy solution for combining different design models into a single source but it also enables the reading, writing and exchange of information all the way through operations and maintenance, passing the value of the single 3D model from design and construction to facilities management.”

“The addition of iConstruct’s offerings and expertise opens up immediate opportunities for our Asset Lifecycle Intelligence and Geosystems divisions. With iConstruct both can deliver greater data management, project planning and communication efficiencies to more customers, segments and disciplines involved in the construction process,” continued Rollén. “In addition, iConstruct’s customer base will benefit from richer content and improved work processes when combining Hexagon’s industry-leading construction automation solutions with iConstruct’s tools.”

Founded in 2009 with headquarters in Perth, Australia, iConstruct will operate as part of Hexagon’s Asset Lifecycle Intelligence division. The acquisition has no significant impact on Hexagon’s earnings.

Hexagon AB, a global leader in digital reality solutions combining sensor, software and autonomous technologies, today announced the acquisition of ETQ, a leading provider of SaaS-based QMS (quality management system), EHS (environment, health and safety) and compliance management software.

Customers have long relied on ETQ’s future-ready, truly multi-tenant QMS solution, ETQ Reliance. It provides the data backbone for automating the collection and delivery of manufacturing quality control data, non-conformance reports, customer feedback and more, providing an enterprise view of quality management across the entire product lifecycle. Its broad portfolio of best-in-class applications comes with out-of-the-box functionality and no-code configurability, enabling customers to tailor the solution to their unique needs and optimise critical business processes to achieve their quality, safety and environmental goals.    

“Our leadership in quality data capture and smart digital realities makes ETQ an excellent fit. The acquisition brings a mix of talent and deep quality expertise across extensive industry verticals, targeting the rapidly widening gap between quality data creation and leverage,” says Hexagon President and CEO Ola Rollén. “Integrating data from our metrology systems with Reliance leads to increasing levels of autonomy that improve a customer’s ability to put quality and process data to work. ETQ also enables connectivity of quality data and processes across supply chains, bringing suppliers and customers into one system.”

ETQ’s advanced data management capabilities, driven by machine learning and artificial intelligence, make quality data fully actionable and available further upstream. Not only does this reduce defects, scrap, rework, and recalls, but it also enables an autonomous feedback loop, digital information trail and virtuous cycle of continuous improvement.

“Hexagon has long been in the business of enabling customers to realise the benefits that data-driven automation and product quality insights bring, including the freedom to create the undisputed factory floor of tomorrow—one that is self-sufficient, self-monitoring, self-optimising and self-repairing,” continued Rollén. “With our global footprint, vertical synergies and good customer fit, which includes our recently acquired EAM business, ETQ is poised for rapid growth. We’re proud to welcome ETQ to the family as we continue to accelerate our journey to the cloud and build the world’s leading quality stack from shop floor to top floor.”

Founded in 1992, ETQ is headquartered in Massachusetts, USA, with additional offices in Arizona, USA and Dublin, Ireland. With 185 employees, its team of quality experts drive customer success across diverse industries—life sciences, healthcare, heavy manufacturing, electronics, food and beverage, heavy process, automotive and more. ETQ will operate as part of Hexagon’s Manufacturing Intelligence division.

Transaction overview
ETQ is expected to generate revenues of around 75 MUSD in 2022 with an adjusted operating margin of over 35 per cent (cash EBITDA margins of around 45 per cent, reflecting a SaaS prepayment model). ETQ has been driving its customer base to SaaS, which is expected to account for half of bookings in 2022 and has been growing at a trailing 3-year Compound Annual Growth Rate (CAGR) of 60 per cent. Given the strong fit across Hexagon’s manufacturing and process industries and the significant scope for geographical expansion, the transaction is expected to generate sales synergies of over 40 MUSD, with very strong incremental margins, by 2026.

Transaction and integration costs including surplus values in the purchase price allocations (PPA) and deferred revenue adjustments affecting the income statement will be communicated as soon as the calculations are completed.

Hexagon will pay a purchase price of 1,200 MUSD for ETQ on a cash and debt free basis. The cash consideration will be fully financed via existing debt facilities resulting in a proforma net debt to EBITDA ratio of approximately 2.0 after the transaction. ETQ will be accretive to Hexagon’s adjusted earnings (before PPA and other purchase accounting adjustments) as of closing.

Completion of the transaction is subject to regulatory approvals and other customary conditions, which are expected to be fully completed by early in the second quarter 2022.

For further information, please contact:
Maria Luthström, Head of Sustainability and Investor Relations, Hexagon AB, +46 8 601 26 27, [email protected]
Kristin Christensen, Chief Marketing Officer, Hexagon AB, +1 404 554 0972, [email protected]

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 08:00 CET on 25 February 2022.

Hexagon AB, a global leader in digital reality solutions, today announced the acquisition of Immersal Oy, a pioneer and leading innovator of spatial mapping and visual positioning solutions used to produce augmented reality (AR) applications.

AR applications enhance real-world experiences by augmenting a user’s visual perception with the display of digital content in the physical world. AR’s ability to weave context-specific, 3D information into physical spaces provides endless opportunities to save time, improve performance and reduce costs across a wide range of industries and applications – from surveying, construction, public safety and manufacturing to maintenance, training and navigation applications. The immersive experience can help boost task efficiency, improve safety protocols, optimise workflows, increase collaboration and much more.

The Immersal SDK (software development kit) allows developers to merge and “anchor” digital content to real-world objects – with precise accuracy to their actual location in the physical space – by enabling a user’s mobile device to locate and orient itself in the surrounding physical world using machine-readable maps. The maps, which are used for visual positioning, are constructed from image data supported by various mapping devices (including mobile phones) and hosted in the Immersal Cloud Service.

“Hexagon has long been a leader in delivering smart digital realities that combine inputs from reality capture sensors with advanced visualisation software and tools to enable remote, location-based intelligence. This acquisition puts the power of these insights into the hands of those on-site, enhancing their field of view with superimposed digital information, meaning they can literally do more with what they see,” says Hexagon President and CEO Ola Rollén. “For example, direct access to information about an asset – while working with that asset – including step-by-step instructions on how to repair it, can streamline maintenance tasks while reducing material waste and re-work.”

Immersal has years of experience developing AI and machine learning-based spatial anchor technology, which “anchors” virtual objects or models for viewing on different devices in the same position and orientation. This unlocks a wide variety of location-based solutions and services – from consumer-oriented augmented reality applications in gaming and media and entertainment to digital twin solutions on an enterprise scale. Immersal’s technology can map large spaces – both indoors and outdoors – and, unlike other solutions, works both offline on-device and online using the Cloud Service.

Founded in 2015 and headquartered in Helsinki, Finland, Immersal will operate as part of Hexagon’s Geosystems division. The acquisition has no significant impact on Hexagon’s earnings.