Hexagon Announces Plans for the Spin-Off of its Asset Lifecycle Intelligence Division and Associated Businesses

Hexagon AB announced that the organization is preparing for the spin-off of its Asset Lifecycle Intelligence (ALI) division and related businesses to a new company, NewCo. The organization’s Board plans to propose the distribution and listing of NewCo’s shares at a shareholder meeting in early 2026.

Hexagon expects NewCo to list on a US national securities exchange. Subject to regulatory approvals, Hexagon will establish a temporary Swedish Depository Receipt programme for NewCo via a listing on Nasdaq in Stockholm, for existing shareholders to locally participate in potential value creation and facilitate the transition to the US listing.

NewCo Perimeter Expanded to Include Safety, Infrastructure, & Geospatial

After the Board’s evaluation, Hexagon has expanded the expected perimeter of NewCo to include the remainder of Hexagon’s Safety, Infrastructure & Geospatial (SIG) division. As before, the NewCo perimeter will include the ETQ business (currently operating under the Manufacturing Intelligence division) and the Bricsys business (currently operating under the Geosystems division).

NewCo

NewCo will be a pureplay software and SaaS company, offering comprehensive asset lifecycle intelligence, safety, infrastructure, and geospatial capabilities for a wide array of industries. NewCo will leverage best-in-class capabilities across diverse domains, applying them in new ways to deliver previously unrealized market advantages. With a data-centric strategy, NewCo will help customers plan, operate, and maintain assets more effectively, enabling clearer insights and better incident response. As a standalone company, NewCo will also have increased flexibility to pursue its distinct operating strategy, accelerate a SaaS transition, and shift to recurring revenues, and establish a separate currency for future M&A. As previously announced, NewCo will be led by Mattias Stenberg who is currently President of Hexagon’s ALI division.

As of December 31, 2024, NewCo, which includes SIG, ETQ, and Bricsys, had around 7,200 employees and reported revenues of approximately EUR 1,448 million, with an adjusted operating margin (EBIT1) of about 31 percent for the year, before accounting for standalone costs and under IFRS standards. The board expects the separation and listing process to be completed in the first half of 2026, pending stakeholder approval.