Baker Hughes to sell Waygate unit to Hexagon for $1.45B in cash

Baker Hughes has agreed to sell its Waygate Technologies unit to Swedish industrial technology group Hexagon for approximately $1.45 billion in cash, the companies said on Monday.

The transaction, which remains subject to customary closing conditions and regulatory approvals, is expected to be completed in the second half of 2026.

Hexagon stated it plans to fund the acquisition through a combination of cash reserves and existing debt capacity.

Waygate Technologies, part of Baker Hughes’ Industrial & Energy Technology segment, specialises in advanced non-destructive testing solutions.

It is used to inspect critical infrastructure without causing disruption.

The business includes remote visual inspection, ultrasound, radiography, and imaging technologies, along with all associated assets such as intellectual property and operational resources.

The divestment comes as Baker Hughes continues to streamline its portfolio in line with broader strategic priorities.

The company has been actively reshaping its operations to adapt to the global energy transition, focusing on higher-growth and lower-carbon segments.

“This transaction marks another significant milestone and reinforces our ongoing commitment to long-term value creation for our shareholders,” said Lorenzo Simonelli, Chairman and CEO of Baker Hughes.

The company indicated that proceeds from the sale would strengthen its balance sheet and support its disciplined capital allocation strategy aimed at improving earnings durability and cash flow.

Deal complements broader growth strategy

The sale of Waygate Technologies follows a series of strategic transactions undertaken by Baker Hughes, including its previously announced $13.6 billion all-cash agreement to acquire Chart Industries.

That deal is intended to expand its footprint in natural gas and liquefied natural gas markets.

Baker Hughes said the ongoing portfolio adjustments sharpen its strategic focus on value-driven management and alignment with long-term growth opportunities in energy and industrial technologies.

Hexagon expands measurement technology capabilities

For Hexagon, the acquisition strengthens its position as a global leader in precision measurement and inspection technologies.

Headquartered in Stockholm, the company operates in approximately 50 countries with a workforce of around 24,500 employees.

Hexagon provides solutions across sectors, including aerospace and defence, automotive, construction, manufacturing, and mining.

The addition of Waygate Technologies is expected to enhance its capabilities in industrial inspection and asset integrity solutions.

JP Morgan Securities LLC is acting as the exclusive financial adviser to Baker Hughes on the transaction.

The deal underscores a continued trend among energy technology companies to optimise portfolios, divest non-core assets, and prioritise investments in areas aligned with evolving industry demands and sustainability goals.