Hexagon AB, the world’s biggest maker of measuring instruments, agreed to buy U.S.-based Intergraph Corp. for $2.13 billion to add software that helps companies visualize complex data and design factories, ships and oilrigs.
The purchase is fully financed through bank facilities, Stockholm-based Hexagon said in a statement today, adding that it will seek to raise $850 million from a share sale to existing investors once the transaction has been completed.
Buying Huntsville, Alabama-based Intergraph will boost Hexagon’s workforce by more than 50 percent, adding 4,000 employees in 34 countries. The deal follows the purchase of Brown & Sharpe, Leica Geosystems and NovAtel in the past decade.
“This fits right into Hexagon’s strategy,” said Jon Hyltner, an analyst at Handelsbanken AB in Stockholm with a “buy” rating on shares of the Swedish company. “They have talked for a while about wanting to do something, so it’s not a huge surprise, but this is a really big acquisition.”
Intergraph, which provides software to businesses and governments in more than 60 countries, seems to have “pretty good” profitability, Hyltner said.
Hexagon was trading little changed at 101.60 kronor as of 9:23 a.m. in Stockholm. It has declined 3.9 percent this year, valuing the company at 27 billion kronor ($3.5 billion).