Computer-aided design pacesetter Intergraph reported it has signed a definitive agreement to be acquired by Sweden's Hexagon. The transaction is valued at $2.125 billion, Intergraph said.
Based in Huntsville, Ala., Intergraph was acquired in 2006 by a group of investors led by Hellman & Friedman, TPG Capital, and JMI Equity. At the time of the 2006 negotiations, the price tag mentioned for Intergraph was $1.3 billion.
"The acquisition of Intergraph to become Hexagon's core software platform provides excellent growth prospects and synergies within our portfolio of measurement technologies and is fundamental to our company's growth strategy," said Ola Rollen, CEO and president of Hexagon, in a statement.
In addition to measurement and geospatial intelligence software, the new combined companies will focus on customers in security, energy, and infrastructure fields.
Intergraph, which has about 4,000 employees, logs about 40% of its business in the United States.
In a release, Hexagon said: "Driven by global growth trends in key end-markets, particularly energy consumption and the need for security and infrastructure development, Intergraph is expected to continue to deliver significant growth in coming years."
R. Halsey Wise, Intergraph chairman, president, and CEO, indicated the acquisition and Hexagon's resources would enable additional investment in Intergraph's business to take place.
Intergraph said it expects the acquisition to be completed in the third or fourth quarter.