Hexagon acquires Baker Hughes' Waygate Technologies non-destructive testing unit for $1.45 billion in the largest European industrial technology deal of 2026
Hexagon AB, the Swedish industrial technology group with a market capitalisation of approximately $29 billion and revenues of €5.4 billion, is acquiring Waygate Technologies from Baker Hughes for $1.45 billion in cash. Waygate is the world's leading provider of non-destructive testing (NDT — inspection methods that evaluate materials or components without causing damage), with revenues of approximately $630 million, around 1,500 employees, and operations across 25 locations globally. Waygate's technology portfolio spans CT scanning, radiography, ultrasonics, and remote visual inspection, serving aerospace, automotive, energy, and industrial manufacturing clients. For Baker Hughes, the divestiture is part of a strategic refocusing on its core energy technology business. For Hexagon, Waygate extends its quality assurance capabilities from external surface measurement into internal structural inspection, adding a recurring maintenance, repair and overhaul (MRO — the servicing of industrial equipment in service) revenue stream to its portfolio. The transaction is expected to close in H2 2026, subject to regulatory approvals. The deal is described as the largest European industrial technology transaction of 2026 to date.
Why this matters
At $1.45 billion, this is a significant cross-border carve-out with a clear European nexus — a Swedish acquiror buying a business from a US energy technology conglomerate. The transaction requires merger control clearance in multiple jurisdictions, including the EU (where Hexagon has significant European operations) and likely the US, given Baker Hughes' American domicile. From a legal structuring perspective, the acquisition of a global business with 25 locations activates cross-border due diligence, multi-jurisdictional regulatory filings, and post-completion reorganisation. The 'why now' trigger is industrial consolidation: as AI-driven automation raises the value of sensor and inspection data, technology groups are acquiring NDT capabilities to integrate physical inspection data into digital manufacturing platforms. Baker Hughes' strategic exit from non-core industrial testing assets reflects the same pattern seen in the Eurofins/MET Labs transaction — focused portfolio strategy driving divestiture activity.
On the Ground
A trainee on this matter would coordinate local counsel instruction letters for merger control filings across EU member states and the US, prepare sanctions screening memos for the acquired entities given Waygate's energy sector client base, and assist with cross-border legal opinion coordination for the cash consideration payment and share transfer mechanics.
Interview prep
Soundbite
Industrial technology carve-outs at $1bn+ scale require simultaneous EU and US merger control clearance — generating six-to-nine-month multi-jurisdictional advisory mandates.
Question you might get
“What are the key merger control considerations when a European acquiror buys a globally operating business from a US seller, and which regulatory regime typically sets the critical path to closing?”
Full answer
Hexagon is acquiring Waygate Technologies from Baker Hughes for $1.45 billion cash, making it the largest European industrial technology deal of 2026. For law firms, the cross-border carve-out structure — a Swedish buyer acquiring a US-domiciled business with global operations — requires EU and US merger control filings, cross-border due diligence across 25 locations, and transitional services agreement negotiation. Baker Hughes' rationale is portfolio focus on core energy technology; Hexagon's is adding internal structural inspection to its existing surface measurement business, positioning it for the integration of physical and digital quality assurance. The deal reflects a broader trend of European industrial technology consolidation driven by the rising value of inspection data in AI-enabled manufacturing. H2 2026 close targets will keep this matter live through summer.
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