Hexagon: Rather small acquisition complements positioning offering

Hexagon announced the acquisition of Septentrio, which develops high-tech positioning technology. The acquisition has a small impact of 1% on group sales and operating profit. The acquisition complements the well-growing Autonomous Solutions division, which is benefiting from the emergence of autonomous technologies as well as increased global military spending and geopolitical tensions.

Small increment to group numbers

Hexagon announced on Tuesday morning that it has agreed to acquire Septentrio NV, a provider of Global Navigation Satellite System (GNSS) technologies (mainly hardware, we believe). Septentrio had revenue of over 50 MEUR in 2024 with margins in line with the Hexagon Group. We therefore expect the acquisition to increase Hexagon Group's revenue and adjusted EBIT by roughly 1%. Sales have grown strongly in 2024 according to Hexagon. We will include the acquisition in our estimates in our Q4'24 update report at the latest. We do not see the acquisition having a significant impact on the share value or our recommendation. The acquisition is subject to regulatory approvals and is expected to be finalized in H1 2025. The purchase price was not disclosed by Hexagon.

Complementary offering to Autonomous Solutions division

Septentrio develops GNSS receivers that are sold to a large base of OEM customers in various industries such as defense, marine and agriculture. Septentrio’s solutions provide strong resilience against jamming or spoofing, which is increasingly important in both civil and military applications amidst growing geopolitical tensions. The acquired business complements Hexagon’s Autonomous Solutions division, which already had a strong growth profile on its own before the acquisition.