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Baker Hughes Divests Waygate Technologies to Hexagon for $1.45B
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Key Takeaways
BKR sells Waygate Technologies to Hexagon for $1.45B in cash, with the deal expected to close in H2 2026.
BKR divests imaging, ultrasound and inspection unit to optimize its portfolio and focus on core businesses.
Baker Hughes aligns sales with strategy to boost shareholder value and strengthen its balance sheet.
Baker Hughes Company (BKR - Free Report) has announced the sale of Waygate Technologies unit, part of its Industrial & Energy Technology (IET) segment, to Hexagon for $1.45 billion in cash, marking a significant step in optimizing its portfolio for greater value and higher cash flow durability.
The transaction, expected to close in the second half of 2026, is subject to regulatory approvals and customary closing adjustments. The divestiture includes the complete portfolio of imaging solutions, ultrasound and remote visual inspection tools of Waygate Technologies, a global leader in advanced non-destructive testing. All associated resources, assets and intellectual property of Waygate Technologies are part of the agreement.
This sale, alongside a combination of key divestitures and the pending acquisition of Chart Industries, aligns with the company’s disciplined strategy to enhance shareholder value, strengthen the balance sheet and focus on core growth areas. By acquiring Waygate Technologies, Hexagon will expand its footprint in non-destructive testing for critical assets.
BKR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are TechnipFMC plc (FTI - Free Report) , Drilling Tools International Corporation (DTI - Free Report) and Archrock, Inc. (AROC - Free Report) .
The business models of players providing oilfield services to upstream companies like TechnipFMC and Drilling Tools International are closely tied to upstream players' capital spending. With West Texas Intermediate crude prices trading above $90 per barrel, according to Oilprice.com, significantly higher than the year-ago price, upstream companies are enjoying a favorable business environment. Upstream players are likely to ramp up capital spending in response to higher prices, which is expected to increase demand for oilfield services, thereby benefiting TechnipFMC and Drilling Tools International. FTI and DTI each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Archrock has a strong positioning in the natural gas compression business. Strong natural gas demand driven by liquified natural gas exports and power consumption is expected to drive sustained compression growth over the next several years. This trend directly benefits Archrock through its essential role in providing compression equipment and services across the natural gas value chain. AROC has a Zacks Rank #2 (Buy) at present.
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Baker Hughes Divests Waygate Technologies to Hexagon for $1.45B
Key Takeaways
Baker Hughes Company (BKR - Free Report) has announced the sale of Waygate Technologies unit, part of its Industrial & Energy Technology (IET) segment, to Hexagon for $1.45 billion in cash, marking a significant step in optimizing its portfolio for greater value and higher cash flow durability.
The transaction, expected to close in the second half of 2026, is subject to regulatory approvals and customary closing adjustments. The divestiture includes the complete portfolio of imaging solutions, ultrasound and remote visual inspection tools of Waygate Technologies, a global leader in advanced non-destructive testing. All associated resources, assets and intellectual property of Waygate Technologies are part of the agreement.
This sale, alongside a combination of key divestitures and the pending acquisition of Chart Industries, aligns with the company’s disciplined strategy to enhance shareholder value, strengthen the balance sheet and focus on core growth areas. By acquiring Waygate Technologies, Hexagon will expand its footprint in non-destructive testing for critical assets.
BKR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are TechnipFMC plc (FTI - Free Report) , Drilling Tools International Corporation (DTI - Free Report) and Archrock, Inc. (AROC - Free Report) .
The business models of players providing oilfield services to upstream companies like TechnipFMC and Drilling Tools International are closely tied to upstream players' capital spending. With West Texas Intermediate crude prices trading above $90 per barrel, according to Oilprice.com, significantly higher than the year-ago price, upstream companies are enjoying a favorable business environment. Upstream players are likely to ramp up capital spending in response to higher prices, which is expected to increase demand for oilfield services, thereby benefiting TechnipFMC and Drilling Tools International. FTI and DTI each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, Archrock has a strong positioning in the natural gas compression business. Strong natural gas demand driven by liquified natural gas exports and power consumption is expected to drive sustained compression growth over the next several years. This trend directly benefits Archrock through its essential role in providing compression equipment and services across the natural gas value chain. AROC has a Zacks Rank #2 (Buy) at present.