Information on the Target

Hexagon has announced its intent to acquire Septentrio NV, a prominent Original Equipment Manufacturer (OEM) renowned for its advanced Global Navigation Satellite System (GNSS) technologies. This acquisition aims to enhance innovation and broaden the market presence of Resilient Assured Positioning solutions. Septentrio is recognized for its trailblazing GNSS platform, which, when integrated with Hexagon's extensive positioning portfolio—encompassing sensor fusion, anti-jamming capabilities, correction services, and perception technologies—will enable the development of cutting-edge solutions applicable across diverse markets.

With a robust reputation for innovation and a strong focus on customer satisfaction, Septentrio will maintain its operational framework, continuing to provide state-of-the-art GNSS technology and products to its extensive base of industry-leading OEM customers. The expected revenue for Septentrio in 2024 is projected to exceed 50 million euros, supported by consistent growth rates and margins aligned with the Hexagon Group.

Industry Overview in Belgium

Belgium's positioning and navigation technology sector plays a vital role in the European economy, bolstered by advancements in satellite and geolocation technologies. With the rise of digital transformation, the demand for precision positioning and navigation systems has surged, significantly impacting industries such as autonomous vehicles, robotics, and logistics. The Belgian market benefits from a strong regulatory framework and government support, fostering innovation in satellite technologies and positioning systems.

The integration of GNSS technologies with emerging fields like autonomous systems and UAVs (Unmanned Aerial Vehicles) has created substantial growth opportunities within Belgium's technology landscape. Companies in this space are increasingly focused on offering high-accuracy solutions that meet the evolving needs of different sectors, leading to significant investments in research and development.

Competition within Belgium’s GNSS market is intensifying, with both local startups and established global players striving to capture market share. Companies that can deliver advanced positioning technologies with enhanced resilience and scalability are well-positioned to succeed amidst this competitive environment. The shift towards automation across various applications is anticipated to drive further demand for GNSS solutions.

The Rationale Behind the Deal

The strategic acquisition of Septentrio by Hexagon is motivated by the need to enhance their product offerings and expand their market footprint. By merging Septentrio's cutting-edge GNSS platform with Hexagon's existing portfolio, the combined entity aims to lead the charge in addressing the growing demand for reliable, high-accuracy positioning systems across multiple sectors. This acquisition positions Hexagon to accelerate the adoption of autonomous technologies in established markets while also penetrating emerging segments.

The collaboration is expected to set new standards for the accuracy, resilience, and scalability of positioning technologies, essential for supporting the ongoing shift towards full autonomy in various industries, such as automotive, aerospace, and robotics.

Information About the Investor

Hexagon AB is a global leader in precision technologies, offering innovative solutions in digital twins, robotics, and AI. With approximately 24,500 employees in 50 countries, Hexagon generated net sales of approximately 5.4 billion euros. Its commitment to transforming industries through cutting-edge technology makes it a formidable player in the precision technology landscape. Hexagon continues to invest in advancing its technological capabilities to cater to diverse industries worldwide.

With the acquisition of Septentrio, Hexagon seeks to leverage its existing technologies and operational expertise to enhance the functionality and market reach of GNSS solutions, thereby solidifying its leadership position in the sector.

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In the opinion of industry experts, Hexagon's acquisition of Septentrio is a strategically sound investment that positions the company for significant growth in the rapidly evolving GNSS market. By integrating Septentrio's innovative offerings with its own advanced technologies, Hexagon not only enhances its product lineup but also broadens its market reach, particularly in high-growth sectors like robotics and autonomy.

This deal is likely to foster greater innovation, allowing Hexagon to quickly respond to customer demands for more efficient and precise positioning solutions. As industries increasingly rely on automation and advanced navigation technologies, the timing of this acquisition aligns well with market trends, suggesting a promising future for the combined entity.

Moreover, the projected revenue growth of Septentrio after the acquisition indicates a robust potential return on investment for Hexagon. The synergy between the two companies is expected to yield operational efficiencies and enhance profitability in the long run. Overall, this acquisition is poised to enhance Hexagon's competitive edge in the booming GNSS sector.

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