Hexagon Buys U.S. Software Company ETQ for $1.2 Billion (1)

Swedish industrial group Hexagon AB has bought U.S. software developer ETQ for $1.2 billion on a cash and debt free basis.

The transaction will beef up Hexagon’s offering in the management systems segment and comes as industrial players increasingly flex their balance sheets to build out lucrative services revenues. Last year, the Swedish company agreed to buy Infor’s global software business for about $2.75 billion.

Hexagon’s shares fell 1.7% during early trading in the Swedish capital on Friday, while the main OMX Stockholm 30 Index advanced 0.8%.

Massachusetts-based ETQ is expected to generate revenue of about $75 million this ...