Hexagon Announces Spin-Off Of Asset Lifecycle Intelligence Division

Hexagon Announces Spin-Off Of Asset Lifecycle Intelligence Division

Hexagon AB has announced its plan to spin off its Asset Lifecycle Intelligence division and related businesses into an independent, publicly traded company. The new entity, referred to as NewCo in the interim, will focus on asset lifecycle intelligence and associated markets. It will incorporate Hexagon’s Safety, Infrastructure & Geospatial (SIG) division, ETQ – a leading provider of integrated quality management, health, safety and environmental solutions for manufacturers – and Hexagon’s existing Bricsys computer-aided design (CAD) software and collaboration tools portfolio. The spin-off is expected to be completed in the first half of 2026, subject to stakeholder approval.

The separation is intended to create two distinct businesses with independent operational and financial strategies. Hexagon has stated that the move will allow the new entity to focus on its core markets while enabling Hexagon AB to optimize its remaining portfolio. This follows a broader industry trend, where organizations establish specialized entities to enhance market positioning and shareholder value. Hexagon has confirmed that NewCo will be listed on a US national securities exchange, citing Intergraph’s legacy as a US public company and the location of the management team as key factors in this decision.

The new entity will be led by Mattias Stenberg, the current president of Hexagon’s Asset Lifecycle Intelligence division. The leadership team is expected to maintain continuity through the transition while prioritizing long-term growth in asset lifecycle intelligence and related technologies. By integrating several Hexagon businesses, NewCo’s portfolio will expand its presence across asset intelligence, compliance management and geospatial technologies. These businesses collectively represent a diverse range of asset lifecycle and operational intelligence capabilities, which may position NewCo for differentiation within the market.

Hexagon's Asset Lifecycle Intelligence division offers a suite of industrial software solutions that span the asset lifecycle, from design and construction to operations and maintenance. This positions the firm as one of a handful of industrial software providers able to offer a comprehensive, end-to-end solution set. With the launch of HxGN SDx2 in July 2024, Hexagon expanded its ability to support industrial stakeholders in leveraging data for operational efficiency. Following the spin-off, the new entity is likely to enjoy increased flexibility to focus on sector-specific product development and align its strategy more closely with the needs of industrial customers.

The creation of a standalone asset intelligence business introduces considerations on how the new organization will establish its competitive positioning in a dynamic market. Its ability to address industry challenges and adapt to emerging technological advancements will likely influence its long-term success. As the separation progresses, stakeholders will assess how the firm defines its strategic priorities and how Hexagon’s remaining portfolio evolves post-spin-off. Further updates, including financial and structural details, are expected as Hexagon continues with the transition.

For more information on asset management technologies and overview of the market landscape, visit the Verdantix Industrial Transformation research portal.