Here at Constructech, we have written a number of times about shakeups in the construction-technology space including M&As (mergers and acquisitions), companies closing, companies going bankrupt, partnerships, and more. M&As in particular seem to come in waves, some waves faster and larger than others. Now, we see the next steps one company is taking to spin-off one of its divisions.
Earlier in March, Hexagon AB announced how it is preparing to spin-off one division. The board of directors, after a comprehensive assessment, has directed management to prepare for the separation of its Asset Lifecycle Intelligence division and related businesses through a Lex Asea distribution—also known as a spin-off—to its shareholders, as previously announced on October 25, 2024.
The reason is quite simple: Ola Rollén, chairman of the board for Hexagon, says it is convinced a spin-off allows each company to capitalize on their competitive advantages, execute on their increasingly distinct strategies, and leverage greater agility.
All about NewCo
NewCo will be a software and SaaS (software-as-a-service) company, and it will offer asset lifecycle intelligence, safety, infrastructure, and geospatial capabilities for a range of industries. With a data-centric strategy, NewCo will help customers plan, operate, and maintain assets more effectively, enabling clearer insights and better incident response.
The NewCo spin-off will include the remainder of Hexagon’s Safety, Infrastructure & Geospatial division, as opposed to solely the Utilities & Infrastructure business within SIG, as was previously communicated. NewCo will also include the ETQ business, which is currently operating under the Manufacturing Intelligence division, and the Bricsys business, which is currently operating under the Geosystems division.
NewCo will be led by Mattias Stenberg who is currently president of Hexagon’s Asset Lifecycle Intelligence division. Steven Cost has announced his decision to retire from his current position as president of Safety, Infrastructure & Geospatial at the end of Q1 2025.
As a standalone company, NewCo will also have increased flexibility to pursue its distinct operating strategy, accelerate a SaaS transition and shift to recurring revenues, and establish a separate currency for future M&A.
Considering the geographical focus of NewCo’s business, and Intergraph’s heritage as a U.S. public company and the location of its management team, Hexagon expects NewCo to list on a U.S. national securities exchange.
What’s Next
The board plans to propose the distribution and listing of NewCo’s shares at a shareholder’s meeting in early 2026. If approved by relevant stakeholders, it is the board’s current expectation that the separation and listing process will be completed in the first half of 2026. Hexagon will provide additional information on the cost of the separation process and other key matters in the future.
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