Following a comprehensive assessment, Hexagon AB reported Mar. 4 that its board has directed management to separate its asset lifecycle intelligence (ALI) division and related businesses, known as NewCo, by preparing for a previously announced “Lex Asea distribution” or spinoff to its shareholders. The board plans to propose the distribution and listing of NewCo’s shares at a meeting in early 2026 if circumstances are deemed right.
Reflecting the geographical focus of NewCo’s business, including Intergraph’s heritage as a U.S. public company and the location of its management team, Hexagon expects NewCo to list on a U.S. national securities exchange. Subject to regulatory approvals, Hexagon will establish a temporary, Swedish, depository-receipt program for NewCo via a listing on Nasdaq in Stockholm/ This will let existing shareholders participate locally in potential value creation and facilitate transition to the U.S. listing.
“After an extensive review, we remain convinced that a spinoff will allow each company to capitalize on their competitive advantages, execute their increasingly distinct strategies, and leverage their greater agility to accelerate growth and benefit from clear structural tailwinds,” says Ola Rollén, board chair at Hexagon. “We’re excited by what’s to come for each of these companies, as well as the value we believe a spinoff will create for our employees, customers and shareholders.”
Expanded focus on safety, infrastructure and geospatial
In addition, Hexagon has expanded NewCo’s jurisdiction to include the remainder of Hexagon’s safety, infrastructure and geospatial (SIG) division, instead of just the utilities and infrastructure business in SIG, which was reported previously. As before, NewCo’s purview will also include the ETQ business operating as part of Hexagon’s manufacturing intelligence division, as well as the Bricsys business operating as part of the geosystems division.
Including SIG, ETQ and Bricsys, New Co had approximately 7,200 employees, and approximately 1.44 billion euros in revenues as of Dec. 31, including an adjusted operating margin (EBIT) of approximately 31%, before considering standalone costs and using IFRS accounting standards. Excluding NewCo, Hexagon had approximately 17,600 employees as of Dec. 31, and revenues of approximately 3.953 billion euros, including an EBIT of approximately 29%.
“Including SIG with NewCo reflects a shared history, and presents financial and operational synergies,” adds Rollen. “SIG’s diversified and sticky global customer base expands NewCo’s market, and adds software solutions for transforming complex data into powerful insights and analytics. NewCo’s expanded perimeter also means a tighter focus for Hexagon on its core mission of accelerating our leadership in measurement technologies, and developing increasingly autonomous solutions across all markets.”
Consequently, NewCo will operate as a software and software as a service (SaaS) company, offering asset lifecycle intelligence, safety, infrastructure, and geospatial capabilities. It will help users plan, operate, and maintain assets more effectively, enabling clearer insights and better incident responses. As a standalone company, NewCo will also have increased flexibility to pursue its distinct operating strategy, accelerate a SaaS transition, shift to recurring revenues, and establish a separate currency for future mergers and acquisitions. As previously announced, NewCo will be led by.
“NewCo is uniquely positioned with software and services offerings for industry and the public sector, and the entire organization is excited to leverage our scale, product portfolio and collective expertise to drive the next phase of growth as a standalone company,” says Mattias Stenberg, who will lead NewCo, and is currently president of Hexagon’s ALI division. “We’re confident that we’re ideally placed to capitalize on organic and inorganic opportunities.”
