Hexagon to buy US MSC Software for $834 million in biggest deal since 2010

Swedish measurement technology and software firm Hexagon said on Thursday it was buying U.S.-based MSC Software in a $834 million deal to boost its product portfolio in automated manufacturing.

The acquisition is Hexagon’s biggest since buying software firm Intergraph for $2.1 billion in 2010.

Hexagon said the purchase would help it connect the traditionally separate stages of design and production, improving customers’ ability to correct design flaws and production problems prior to manufacturing.

“MSC represents a game changer in our mission to deliver actionable manufacturing intelligence, taking us another step closer to realizing our smart connected factory vision in discrete manufacturing industries such as automotive and aerospace,” Hexagon CEO Ola Rollen said in a statement.

Hexagon said MSC, which has more than 1,200 staff, had sales of $230 million last year with strong profitability and a high portion of recurring revenues. MSC sells computer-aided engineering solutions, including simulation software for virtual product and manufacturing process development.

Closing of the deal was subject to regulatory approvals and other customary conditions, expected in April, Hexagon said.

Hexagon has transformed from a sprawling conglomerate with a market value of a few billion crowns in 2000 into a 120 billion crown ($14 billion) global measurement technology market leader following a steady stream of acquisitions and high organic growth.