Hexagon acquires software supplier within metrology

HEXAGON ACQUIRES WORLD LEADING SOFTWARE SUPPLIER WITHIN METROLOGY Hexagon AB has signed an agreement with the California based company, Wilcox and Associates, Inc. (WAI), to acquire the remaining 70 per cent of WAI's outstanding shares. Hexagon already owns 30 per cent via its subsidiary Brown & Sharpe, Inc. (BNS). WAI is the world leading supplier of software to metrology technique and tooling applications. WAI's software, PC-DMIS, is already sold, on an exclusive basis, by Brown & Sharpe. It is applied as the standard software on a vast majority of Brown & Sharpe's new machines. It is also distributed for upgrades on BNS's and competitors machines via BNS' global aftermarket services organisation. PC-DMIS will constitute the platform for Brown & Sharpe's present and future software systems. PC-DMIS will be complemented by Chorus/Chorus CAD for sheet metal applications as well as Quindos/Quindos NT for ultra high accuracy and gear applications. WAI will be headed by Mr Bill Wilcox, WAI's present chief executive officer. Bill Wilcox will emphasise the task to further strengthen PC- DMIS' world leading position within the Metrology field as well as expand into new application areas. Via this acquisition the strong financial results of WAI will be consolidated with Brown & Sharpe's profitable aftermarket organisation, where software and other service related activities have a combined turn over of more than 70 MUSD. The Acquisition, which is estimated to be concluded on October 1st, 2001, will contribute to Hexagon's earnings from the day of taking possession. "We regard this acquisition as strategic for our continued expansion in the metrology business. PC-DMIS has a very exciting future where the demand for the product will not only come from traditional Co-ordinate Measurement Machines (CMMs), but also from other metrology systems such as vision and laser. The most promising expansion area is, though, applications for CNC-machines.", comments Mr Jack Beagley, CEO of Brown & Sharpe. For further information, please contact: Ola Rollén, CEO, Hexagon AB Håkan Halén, CFO, Hexagon AB Tel: +46 (0)8 601 26 20 Tel: +46 (0)8 601 26 20 Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategies sector. The operation is divided into four business areas: Hexagon Automation, Hexagon Engineering, Hexagon Wireless and Hexagon Metrology. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 SEK billion p.a.