Intergraph Responds to Question Regarding Acquistion by Hexagon AB

By Directions Staff

Yesterday, Hexagon AB announced their intent to acquire Intergraph Corporation. Intergraph issued a press release and Directions Magazine contacted the company for further information regarding the acquisition and what the impact might be in working with the other geospatial companies under the Hexagon umbrella.

Directions Magazine (DM): The press release states that the company will retain its branding and name. What can we expect in terms of a working relationship with other Hexagon geospatial firms such as Leica Geosystems or ERDAS?
Intergraph (INGR): It is correct that Intergraph will be incorporated into the Hexago Group as a separate division. The working relationship between the different entities within the group is still to be determined, but certainly, the intent is to build synergies between Intergraph and the Hexagon entities.

DM: Has there been any discussion as to integrating products from these other divisions?
INGR: No, not as yet.

DM: The press release states that Intergraph will be Hexagon’s “core software platform.” What does that mean in terms of continuing product development and, as in question #1, the relationship with other Hexagon geospatial firms?
INGR: Hexagon provides leading technology measurement hardware systems that produce a tremendous amount of precise data through its full array of digital sensors and measurement technologies. Intergraph's unique and differentiated software will serve as the presentation layer to visualize this immense amount of data to help create actionable intelligence for both organizations' customers. Re: development, while it is too early to specifically cite development milestones, future products from Intergraph and Hexagon will be created with this capability.

DM: There appears to be a heavy emphasis in addressing the Chinese market. Was that part of the reason for the acquisition?
INGR: China is the world's fastest growing market and it was a factor.

DM: What opportunities did either company see with respect to China?
INGR: Intergraph has a growing presence in China, and both companies and their respective product offerings are well-aligned to the infrastructure development and urbanization China is experiencing.

DM: Were there opportunities for a specific expansion into the geospatial market in China that either company wanted to address?
INGR: The massive public works, power station development and urban planning and building have been key Intergraph targets and are shared with Hexagon.

DM: How long have the discussions for acquisition been ongoing?
INGR: It began with an unsolicited in-bound interest query some months ago.

DM: Were there specific vertical markets that acted as a catalyst for the acquisition?
INGR: Power, water, rail, UAV, security are just a few of the application areas shared by Hexagon and Intergraph. Each Hexagon brand represents a strong tradition in its industry or geographical region which is why Hexagon maintains its acquired product brands post-acquisition.

Published Friday, July 9th, 2010

Written by Directions Staff

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