Hexagon AB has announced the sale of certain non-core business assets within its Safety, Infrastructure & Geospatial (SIG) division. These divestments will allow Hexagon’s SIG division to focus on its core software portfolio, particularly its fast-growing public safety business, ahead of the potential separation of Octave.
Most of the purchase is by Bart & Associates (B&A), which has acquired several business assets out of Hexagon US Federal, including IT services supporting the US Federal market, geospatial data production services, and the supply of ruggedized hardware for enabling cyber assurance and situational awareness. In addition, Hexagon has exited a smaller reseller business of APIs and related services designed to solve challenges in mapping and geospatial positioning. Most of the products sold in these businesses are not sold elsewhere across Hexagon.
In 2024, the divested businesses contributed around 90 MUSD in revenues in total, with a level of profitability in line with similar services businesses. Hexagon has agreed with the buyers to not disclose the transaction value. The businesses will be carved out and deconsolidated during July 2025.
Second quarter financial updates
Items affecting comparability (non-recurring items), reflecting costs related to the potential separation of Octave, are expected to amount to 16 MEUR in the second quarter of 2025. As previously announced, Octave will be a pureplay software and SaaS company, and if approved by relevant stakeholders, it is the Hexagon Board’s current expectation that the separation and listing process will be completed in the first half of 2026.
