![]() Hexagon expects ETQ to generate revenue of around $75 million in 2022 (making this a 16x revenue multiple deal - yowza) with an adjusted operating margin of over 35%. This is a very big deal: Hexagon will pay $1,200 million for ETQ on a cash and debt-free basis. We’re proud to welcome ETQ to the family as we continue to accelerate our journey to the cloud and build the world’s leading quality stack from shop floor to top floor.” Rollén added, “ith our global footprint, vertical synergies and good customer fit, which includes our recently acquired EAM business, ETQ is poised for rapid growth. ETQ also enables connectivity of quality data and processes across supply chains, bringing suppliers and customers into one system.” Integrating data from our metrology systems with Reliance leads to increasing levels of autonomy that improve a customer’s ability to put quality and process data to work. The acquisition brings a mix of talent and deep quality expertise across extensive industry verticals, targeting the rapidly widening gap between quality data creation and leverage. ![]() Ola Rollén, Hexagon CEO, said that this acquisition will add to Hexagon's existing “quality data capture and smart digital realities. Not only does this reduce defects, scrap, rework, and recalls, but it also enables an autonomous feedback loop, digital information trail and virtuous cycle of continuous improvement." What I didn't realize is that ETQ has added machine learning and artificial intelligence to its data management capabilities, which Hexagon says, "make quality data fully actionable and available further upstream. Why? To move quality from a contentious "it's not my job" realm and elevate it to an enterprise level, of "it's everyone's problem". I am most familiar with the ETQ solution, Reliance, which manufacturers use to automatically collect and serve out manufacturing quality control data, including non-conformances. Hexagon just announced its intention to acquire ETQ, makers of SaaS-based quality (QMS), environment, health and safety (EHS), and compliance management software.
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