A catalyst-heavy break-up: Hexagon’s Cadence cash infusion and Octave SaaS spin-off aim to unlock sum-of-the-parts value despite cyclical hardware and FX headwinds.
Overview
Hexagon AB (publ), the core constituent of the FTSE Hexagon B Index (SSEXAB.FGI), is a global precision measurement and “digital reality” technology leader headquartered in Stockholm. Under prior CEO Ola Rollén and current CEO Anders Svensson, it has transformed since 2000 from a mixed Nordic conglomerate into a focused industrial-tech platform enabling digital transformation across manufacturing, infrastructure, agriculture, mining, and the public sector. The company employs ~24,500–24,800 people in ~50 countries and produced 2025 operating net sales of €5.426bn. Hexagon monetizes through an integrated mix of precision hardware (metrology sensors, scanners, positioning/robotic systems), perpetual software licenses, SaaS subscriptions, and recurring maintenance/support. Historically it has operated across five divisions: Manufacturing Intelligence (~36% revenue) metrology hardware/software for quality, inspection, and reverse engineering; Geosystems (~29%) reality capture and surveying technologies anchored by Leica Geosystems; Asset Lifecycle Intelligence (~15%) software for industrial asset design/operation (including HxGN EAM and cloud SaaS push); Autonomous Solutions (~10%) safety and positioning for agriculture/mining/defense, strengthened by Septentrio and Inertial Sense; and Safety, Infrastructure & Geospatial (~9%) command-and-control software for public safety, transport, and utilities. The company is now entering a defining restructuring: it plans to spin out ALI+SIG plus ETQ and Bricsys into a standalone public SaaS entity “Octave” in 1H 2026 (Nasdaq US + Nasdaq Stockholm), while divesting the Design & Engineering (MSC) business to Cadence for €2.7bn. These moves are intended to simplify the portfolio, sharpen “Hexagon Core” around sensors/robotics/metrology, and unlock higher valuation multiples for the software-heavy Octave.