hexagon

Bruce Jenkins | Ora Research

Hexagon AB early this month announced its acquisition of Guardvant, a recognized leader in operator safety solutions for the mining industry. Guardvant’s flagship offering, OpGuard, is used to detect and respond to driver fatigue and distraction—the most common underlying cause of accidents in the industry.

To further mitigate operator-related accident risks, Guardvant’s fatigue monitoring capabilities are complemented by collision avoidance and proximity detection solutions that give drivers 360-degree situational awareness. This combination of safety-enhancing technologies is designed to keep drivers safe, equipment protected, and productivity rising.

The benefits of Guardvant’s safety-enhancing solutions are applicable to any industrial worksite, as well as improving transportation safety in industries such as trucking/hauling and aviation. The company says its “market expansion plans are now supported by both new product additions and the ability to leverage Hexagon’s wide market footprint.”

Hexagon says the acquisition “significantly strengthens the safety portfolio offered by Hexagon’s Mining division.” Hexagon reports that worldwide, more than 30,000 mining vehicles are equipped with its collision avoidance system, which is integrated with the company’s solutions for fleet management, personal protection, vehicle intervention, fatigue monitoring and tracking radar. See also our VIRES acquisition by MSC Software accelerates Hexagon’s simulation portfolio and autonomous X strategy, published in this blog last year.

Guardvant currently equips close to 5,000 mining vehicles with fatigue and awareness detection technology. With remote monitoring services bolstering its comprehensive solution-as-a-service, the company provides global enterprise solutions to top mining companies worldwide.

Rollén: “Combined expertise will enable us to better meet the increasing demand for ‘zero harm’ safety goals while providing a natural bridge to fully autonomous systems”

“Guardvant’s highly dedicated and experienced team is a natural fit for Hexagon,” said Hexagon president and CEO Ola Rollén. “We share the vision that driver-assisted solutions are an integral part of safe, efficient, productive operations—whether in mining, construction, agriculture or any industry facing the inherent challenges and risks of operating fleets. Our combined expertise will enable us to better meet the increasing demand for ‘zero harm’ safety goals while providing a natural bridge to fully autonomous systems. This is key, as more and more of our customers express interest in moving beyond automation into the world of autonomous technologies—a trend we are uniquely positioned to embrace.”

Weiss: “Acquisition solidifies Hexagon’s position as the leader in mine safety and enhances our integrated life-of-mine portfolio”

Guardvant’s expertise, particularly in detecting operator fatigue and distraction, helps solidify Hexagon’s leading role in mine safety solutions, said Josh Weiss, president of Hexagon’s Mining division. “Guardvant is a recognized force in fatigue monitoring technology and was the first to market as an OEM-independent in that field,” he said. “The acquisition solidifies Hexagon’s position as the leader in mine safety and enhances our integrated life-of-mine portfolio.”

The industry’s demand for safety solutions is growing faster than for any other area of mining technology, added Weiss. “Guardvant’s knowledge base integrated with our own safety portfolio helps us respond to this demand. It means greater protection for our customers’ assets and real peace of mind when it comes to getting everyone home safely.”

Guardvant CEO Sergio Blacutt shared his excitement about joining Hexagon and its Mining division. “Hexagon shares our commitment to safety and is in the unique position of delivering life-of-mine solutions across a broad technology portfolio,” he said. “We are looking forward to being part of a team that is changing the game for the mining industry.”

Headquartered in Tucson, AZ, USA, Guardvant will operate within Hexagon’s Mining division. The acquisition has no significant impact on Hexagon’s earnings.

About Hexagon

Hexagon is a global leader in digital solutions that create what it terms Autonomous Connected Ecosystems (ACE), “a state where data is connected seamlessly through the convergence of the physical world with the digital, and intelligence is built into all processes.” The company’s industry-specific solutions are designed to “leverage domain expertise in sensor technologies, software and data orchestration to create Smart Digital Realities™ that improve productivity and quality across manufacturing, infrastructure, safety and mobility applications.” Hexagon’s Mining division solves surface and underground challenges with proven technologies for planning, operations and safety.

Guardvant

Hexagon Mining

Hexagon AB

Hexagon AB, a global provider of information technologies that drive productivity and quality across geospatial and industrial enterprise applications, today announced the completion of the previously announced acquisition of MSC Software (“MSC”), a US-based leading provider of computer-aided engineering (CAE) solutions, including simulation software for virtual product and manufacturing process development. Completion of the transaction was subject to regulatory approvals and other customary conditions, which have now been obtained.

The acquisition strengthens Hexagon’s ability to connect the traditionally separate stages of design and production – integrating real-world data generated on the production floor with simulation data to further improve a customer’s ability to reveal and correct design limitations and production problems prior to manufacturing.

MSC has over 1,200 highly-skilled professionals in 20 countries. Its strong brand and reputation in industries such as automotive, aerospace and electronics spans more than 50 years.

MSC will be a fully owned subsidiary of Hexagon and operate under the division Manufacturing Intelligence.

Key Facts

Purchase price of 834 MUSD on a cash and debt free basis (Enterprise Value)

In 2016 MSC generated proforma sales of 230 MUSD, with strong profitability and a high percentage of recurring revenue

The acquisition will further strengthen Hexagon’s smart connected factory strategy to deliver enterprise solutions within manufacturing verticals

The transaction is fully financed via bank facilities and Hexagon’s net debt to EBITDA target of 2.5 will not be exceeded

Non-cash PPA adjustments (Purchase Price Allocations) of approximately 10 MEUR related to impairment of overlapping technologies will impact the income statement during the first quarter 2017 and
approximately 20-30 MEUR related to a revenue recognition adjustment of deferred revenue (haircut) will impact the income statement during 2017

Cash transaction costs of approximately 2 MEUR will impact the income statement during the first quarter 2017
Excluding haircut, MSC is accretive to Hexagon’s earnings as of closing

Hexagon AB
hexagon.com