Hexagon accelerates the shift to fully autonomous mines with acquisition of indurad

Rhea-AI Summary

Hexagon has announced the acquisition of indurad, a German-based leader in radar and Real-Time Location Systems technologies, along with its autonomous haulage subsidiary, xtonomy. The acquisition aims to enhance mine safety through advanced radar-based collision avoidance systems and increase productivity via real-time ore tracking. indurad reported revenues of approximately 19 MEUR in 2023 and has 140 employees globally. The transaction is expected to close in late November, with indurad being consolidated into Hexagon's Autonomous Solutions division. While initially below Hexagon Group levels, profitability is expected to improve as synergies are realized.

Positive

• Strategic acquisition enhancing Hexagon's autonomous mining capabilities
• indurad's 19 MEUR revenue stream addition to Hexagon's portfolio
• Expansion of technology portfolio with radar and RTLS systems
• Expected synergies to improve profitability over time

Negative

• indurad's initial profitability below Hexagon Group levels
• Integration costs and risks associated with the acquisition

Insights

Financial & Mining Technology Analyst

This strategic acquisition strengthens Hexagon's position in the mining automation sector, adding critical radar and RTLS technologies to their portfolio. The deal, valued at approximately 19 million EUR in revenue contribution, represents a calculated move to enhance their autonomous mining capabilities.

The integration of indurad's radar-based systems with Hexagon's existing solutions creates a more comprehensive offering in mine safety and automation. While indurad's current profitability is below Hexagon's standards, the expected synergies and growing demand for autonomous mining solutions present significant upside potential.

Key value drivers include:

• Enhanced product portfolio with proprietary radar technology
• Cross-selling opportunities across Hexagon's global customer base
• Acceleration of autonomous mining solutions development
• Geographic expansion potential through Hexagon's established channels

The timing aligns with the mining industry's increasing focus on automation and safety, positioning Hexagon to capture growing market share in the digital mining transformation space.

STOCKHOLM, Nov. 21, 2024 /PRNewswire/ -- Hexagon has announced the acquisition of indurad, a global leader in radar and Real-Time Location Systems (RTLS) technologies, along with its autonomous haulage subsidiary, xtonomy. This strategic move underscores Hexagon's commitment to advancing mine productivity, safety, and autonomy through cutting-edge technology. 

Key Benefits of the Acquisition: 

• Enhanced Mine Safety: indurad's advanced radar-based collision avoidance systems mitigate risks in high-stakes mining environments. 
• Increased Productivity: Real-time ore tracking and measurement help automate mine workflows, reducing downtime and inefficiencies. 
• Future-Ready Autonomy: indurad's mobile machine automation expertise and OEM-agnostic autonomy platform combined with Hexagon's existing technologies accelerate the shift to fully autonomous mines. 

"This acquisition represents another step towards realising our vision of fully connected and integrated mine workflows," said Norbert Hanke, Interim President and CEO of Hexagon. "indurad's radar technology aligns perfectly with our focus on safety and autonomy, and we are excited to integrate their capabilities into our portfolio to unlock its full potential." 

Based in Germany, indurad specialises in modular radar systems that deliver precise object location tracking, collision avoidance, and machine automation capabilities. These innovations will enhance Hexagon's integrated life-of-mine portfolio, further solidifying its leadership in the mining industry. 

The transaction is expected to close in late November, at which point indurad will be fully consolidated into Hexagon's Autonomous Solutions division. In 2023, indurad reported revenues of approximately 19 MEUR, with profitability initially below Hexagon Group levels but expected to improve as synergies are realised. The company has 140 employees globally. 

For further information, please contact:  
Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, ir@hexagon.com  
Anton Heikenström, Investor Relations Manager, Hexagon AB, +46 8 601 26 26, ir@hexagon.com  

About Hexagon  

Hexagon is the global leader in precision technologies at any scale. Our digital twins, robotics and AI solutions are transforming the industries that shape our reality.   

Hexagon's Autonomous Solutions (Mining) division solves surface and underground mine challenges with proven technologies for planning operations and safety.  

Hexagon (Nasdaq Stockholm: HEXA B) has approximately 24,500 employees in 50 countries and net sales of approximately 5.4bn EUR. Learn more at hexagon.com and follow us @HexagonAB.   

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Hexagon accelerates the shift to fully autonomous mines with acquisition of indurad

 

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SOURCE Hexagon

FAQ

What is the revenue of indurad that Hexagon (HEXA) is acquiring?

indurad reported revenues of approximately 19 MEUR in 2023.

When will Hexagon (HEXA) complete the indurad acquisition?

The transaction is expected to close in late November 2024.

How many employees does indurad bring to Hexagon (HEXA)?

indurad has 140 employees globally.

Which division will indurad join within Hexagon (HEXA)?

indurad will be fully consolidated into Hexagon's Autonomous Solutions division.