Baker Hughes has agreed to sell its Waygate Technologies unit to Swedish industrial technology group Hexagon for $1.45 billion in cash, with the transaction expected to close in the second half of 2026.
Waygate Technologies, formerly GE Inspection Technologies and acquired by Baker Hughes in 2017, was rebranded in 2020. The unit generated approximately $630 million in revenue and a 10% EBIT margin in fiscal year 2025, underscoring its role as a significant contributor to Baker Hughes’ Industrial & Energy Technology segment.
The divestiture is part of Baker Hughes’ portfolio‑optimization strategy, which seeks to concentrate on higher‑margin, life‑cycle‑based businesses such as gas technology, digital solutions, and decarbonisation. The $1.45 billion cash proceeds will strengthen the company’s balance sheet, providing liquidity for debt reduction, capital expenditures, and shareholder returns. "This transaction marks another significant milestone and reinforces our ongoing commitment to long‑term value creation for our shareholders. By sharpening our focus on our core strengths – rotating equipment, flow control, digital, production optimisation and decarbonisation – we are strategically positioning Baker Hughes to deliver higher returns while accelerating investment in high‑growth areas that are aligned with our long‑term vision," said CEO Lorenzo Simonelli.
Hexagon’s acquisition expands its non‑destructive testing and precision measurement capabilities. With a history of more than 170 acquisitions, Hexagon expects to drive Waygate’s margins through manufacturing optimisation and revenue synergies, positioning the company to capture a larger share of the growing NDT market.
Market reaction to the announcement was modest: Baker Hughes shares rose 0.4% on the day, reflecting investor confidence in the strategic clarity of the deal, while Hexagon shares fell about 1% in Stockholm, indicating a cautious assessment of integration and financing considerations.
The sale fits into a broader pattern of portfolio realignment for Baker Hughes, which also announced the pending acquisition of Chart Industries for $13.6 billion and a joint venture with Cactus Inc. for its surface pressure control segment. These moves reinforce the company’s focus on digital, gas‑tech, hydrogen, and carbon‑capture initiatives, positioning it for higher‑margin growth in the energy transition.
Overall, the transaction strengthens Baker Hughes’ financial position and strategic focus while giving Hexagon a foothold in the NDT market, marking a significant shift in both companies’ business trajectories.
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