Hexagon AB, a leading global provider of information technologies that
drive
productivity and quality across geospatial and industrial
enterprise
applications, today announced an agreement to acquire MSC Software
(“MSC”), a
leading provider of computer-aided engineering (CAE) solutions,
including
simulation software for virtual product and manufacturing process
development.

MSC’s simulation analysis capabilities empower customers to
optimise design for
production, ensuring downstream productivity, product
quality and durability.
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 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,” said
Hexagon President and CEO Ola
Rollén (https://twitter.com/olarollen). “We can
now leverage the data our MI
division is generating to improve design choices
and processes upstream in the
workflow. The acquisition will also open up new
markets and touchpoints for MSC
via our PPM division.”

Headquartered in
Newport Beach, CA, United States, 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.

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 will be
fully financed via bank facilities and Hexagon’s net
debt to EBITDA target of
2.5 will not be exceeded
  · Completion of the transaction (closing) is subject
to regulatory approvals
and other customary conditions which is expected in
April
  · Non-cash PPA adjustments (Purchase Price Allocations) of
approximately 10
MEUR related to impairment of overlapping technologies 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 will amount to approximately 2 MEUR
  · MSC will be
accretive to Hexagon’s earnings as of closing

For further information, please
contact:

Maria Luthström, Investor Relations Manager, Hexagon AB, +46 8 601 26
27,
ir@hexagon.com
Kristin Christensen, Chief Marketing Officer, Hexagon AB, +1
404 554 0972,
media@hexagon.com

This information is information that Hexagon
AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The
information was submitted for
publication, through the agency of the contact
person set out above, at 08:00
CET on 2 February 2017.
Hexagon is a leading
global provider of information technologies that drive
productivity and quality
across geospatial and industrial enterprise
applications. Hexagon's solutions
integrate sensors, software, domain knowledge
and customer workflows into
intelligent information ecosystems that deliver
actionable information. They
are used in a broad range of vital industries.
Hexagon (Nasdaq Stockholm: HEXA
B) has more than 16,000 employees in 46
countries and net sales of
approximately 3.0bn EUR. Learn more
at
hexagon.com (http://www.hexagon.com/) and follow us @HexagonAB.