When identifying technology gaps in the product portfolio, Hexagon compares the cost and benefits of developing the technology in-house with acquiring a company that can provide Hexagon with the technology needed. Aspects such as purchase price, resources and time to market are factored into that evaluation process.
Innovation is fundamental in Hexagon’s long-term strategy for growth and profitability. Through successful R&D and sound knowledge of customer needs, growth is created by unique product offerings that save resources and increase competitiveness for customers. Hexagon invests more than 10 per cent of net sales in R&D and typically renews its product portfolio every 18 months.
Company acquisitions are an important part of Hexagon’s long-term growth strategy. Acquired businesses add new technologies and know-how to the Group product portfolio, strengthening the customer offering and creating potential for a stronger presence in markets with high growth and favorable profitability.
Hexagon continuously monitors a large number of acquisition candidates. They are regularly evaluated financially, technologically and commercially. Every acquisition candidate’s potential in Hexagon is determined on the basis of synergy simulations and implementation strategies.
Hexagon applies an aggressive acquisition strategy. Since 2000, the Group has implemented some 80 acquisitions, including large ones such as Brown & Sharpe in 2001, Leica Geosystems in 2005, NovAtel in 2007 and Intergraph in 2010.
Hexagon continuously works to strengthen its brand and brand architecture system globally. Hexagon’s brand strategy supports its growth strategy, helping to create long-term sustainability and profitability for the Group.