Hexagon Asset Lifecycle Intelligence Division

Background

Hexagon's Asset Lifecycle Intelligence (ALI) division specializes in providing digital solutions that enable clients to design, construct, and operate industrial facilities that are more profitable, safe, and sustainable. The division focuses on unlocking data, accelerating industrial project modernization, and enhancing digital maturity.

Key Strategic Focus

The ALI division's strategic objectives include:

Asset Lifecycle Information Management (ALIM): Ensuring consistency and accuracy of engineering data.

Design & Visualization: Facilitating silo-free plant design and engineering through intelligent 3D environments.

Engineering & Schematics: Driving plant optimization while preventing engineering errors.

Engineering Analysis: Simulating, predicting, and optimizing the performance of designs.

Enterprise Project Performance: Providing unparalleled visibility into performance to optimize resources.

Operations and Maintenance: Offering configurable solutions for operations and maintenance.

OT/ICS Cybersecurity: Optimizing cybersecurity, process safety, and digitalization in industrial operations.

Procurement, Fabrication & Construction: Managing plant project processes to avoid costly surpluses and shortages.

Smart Digital Reality: Delivering actionable insights across industrial projects and assets through unified, real-time views of physical and digital realities.

Financials and Funding

As of December 31, 2024, the ALI division, including the Safety, Infrastructure & Geospatial (SIG) division, ETQ, and Bricsys, reported approximately 7,200 employees and revenues of approximately EUR 1,448 million, with an adjusted operating margin (EBIT1) of approximately 31% for the year ended December 31, 2024.

Technological Platform and Innovation

The ALI division leverages several proprietary technologies and methodologies:

HxGN SDx2: A cloud-native SaaS solution that harnesses data for enhanced engineering, operations, and maintenance.

Intergraph Smart® 3D: An intelligent 3D environment designed to deliver mission-critical project requirements.

PAS Cyber Integrity: An OT/ICS risk and endpoint management solution for safer and more resilient industrial operations.

HxGN EAM: A solution that provides greater visibility into assets for better capital spending decisions.

EcoSys™: Enterprise Project Performance software that adds efficient predictability and control across the full project lifecycle.

Leadership Team

Mattias Stenberg: President of Hexagon's Asset Lifecycle Intelligence division. Since joining Hexagon in 2009, Stenberg has held various key leadership roles, including Chief Strategy Officer, and has played a vital role in strengthening Hexagon's strategic direction.

Leadership Changes

Steven Cost: Former President of the Safety, Infrastructure & Geospatial (SIG) division, announced his decision to retire at the end of Q1 2025.

Competitor Profile

Market Insights and Dynamics

The market for asset lifecycle intelligence solutions is characterized by a growing demand for digital transformation in asset-intensive industries. Companies are increasingly seeking solutions that enhance operational efficiency, safety, and sustainability.

Competitor Analysis

Key competitors in the asset lifecycle intelligence space include:

Bentley Systems: Specializes in infrastructure engineering software solutions.

GE Digital: Offers industrial software solutions, including asset performance management.

Rockwell Automation: Provides industrial automation and information solutions.

Dassault Systèmes: Delivers 3D design, 3D digital mock-up, and product lifecycle management software.

Strategic Collaborations and Partnerships

In April 2023, Hexagon's ALI division announced an alliance with Ernst & Young LLP (EY US) to offer digital transformation and cloud migration strategies, including enterprise asset management (EAM) and asset performance management (APM) technologies. This collaboration aims to support clients in addressing asset-related business challenges and pain points.

Operational Insights

The ALI division's strategic considerations include:

Spin-Off Preparation: Hexagon's Board of Directors has directed management to prepare for the separation of the ALI division and related businesses by way of a Lex Asea distribution (spin-off) to its shareholders. The Board intends to propose the distribution and listing of NewCo's shares at a shareholder's meeting in early 2026.

Strategic Opportunities and Future Directions

The ALI division is uniquely positioned with software and services offerings for both industry and the public sector. As a standalone company, NewCo will have increased flexibility to pursue its distinct operating strategy, accelerate a SaaS transition, and shift to recurring revenues. The division is confident in its ability to capitalize on both organic and inorganic opportunities in the market.