Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>Hexagon, a Swedish industrial company, is spinning off its software business, Octave.</li><li>Regular-way trading in the US begins May 28, 2026.</li><li>Trading has already started in Sweden, where the shares have come under pressure.</li></ul>

Hexagon, a Swedish industrial company, is spinning off its software business, Octave.Regular-way trading in the US begins May 28, 2026.Trading has already started in Sweden, where the shares have come under pressure.

Octave Intelligence: Forced Selling Meets a Quality Software Spin-off

<ul><li>In late May, Hexagon AB (Nasdaq Stockholm: HEXA B) will spin-off its software business, Octave Intelligence.</li><li>Octave (represents ~25% of total company revenue) is a pure-play enterprise software and SaaS business built around helping asset-intensive industries — energy, infrastructure, construction, public safety — design, build, operate, and protect their physical assets.</li><li>Its core product is an integrated lifecycle intelligence platform spanning four workflow environments.</li></ul>

In late May, Hexagon AB (Nasdaq Stockholm: HEXA B) will spin-off its software business, Octave Intelligence.Octave (represents ~25% of total company revenue) is a pure-play enterprise software and SaaS business built around helping asset-intensive industries — energy, infrastructure, construction, public safety — design, build, operate, and protect their physical assets.Its core product is an integrated lifecycle intelligence platform spanning four workflow environments.

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Leading Provider of Equity and Investment Research

GSBR Research

We are an independent equity research provider focused on covering global markets. The aim of the research is to provide an unbiased view of the fundamentals of the company.

<ul>
<li>Hexagon will separate its Asset Lifecycle Intelligence and Safety, Infrastructure &amp; Geospatial businesses into Octave Intelligence Plc via a tax-free distribution, targeted for completion in H1 2026.</li>
<li>Hexagon AB (ex-Octave) generates ~€4bn revenue at ~27% EBIT margins, while Octave Intelligence Plc contributes ~€1.4bn with higher ~28% EBIT margins.</li>
<li>The transaction creates two focused entities, with Hexagon centered on industrial technology and Octave positioned as a pure-play, asset-centric software business.</li>
</ul>


Hexagon will separate its Asset Lifecycle Intelligence and Safety, Infrastructure &amp; Geospatial businesses into Octave Intelligence Plc via a tax-free distribution, targeted for completion in H1 2026.
Hexagon AB (ex-Octave) generates ~€4bn revenue at ~27% EBIT margins, while Octave Intelligence Plc contributes ~€1.4bn with higher ~28% EBIT margins.
The transaction creates two focused entities, with Hexagon centered on industrial technology and Octave positioned as a pure-play, asset-centric software business.


Hexagon AB (STO: HEXA-B) To Spin-Off Octave in H1 2026

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and signals a new leg higher is underway. Additionally, the US dollar is showing signs of a breakdown, something we view as a positive for global risk sentiment as long as the decline continues to be orderly. Overall our outlook remains bullish and we suggest buying any dips. Growth remains long-term leadership -- remain overweight. Attractive growth Sectors highlighted in today’s report include: Health Care, Services, Technology, and Communications

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

<ul><li>Healthcare’s relative performance to the S&amp;P 500 is at a historic low.</li><li>According to Bank of America, the sector’s relative forward P/E now sits at roughly 0.8x the S&amp;P 500, down from peaks of 1.4x in the late 1990s.</li><li>To me, it looks like an excellent fishing pond.</li></ul>

Healthcare’s relative performance to the S&amp;P 500 is at a historic low.According to Bank of America, the sector’s relative forward P/E now sits at roughly 0.8x the S&amp;P 500, down from peaks of 1.4x in the late 1990s.To me, it looks like an excellent fishing pond.

Sweden

Hexagon AB is a global provider of design, measurement and visualisation technologies. The main business area, Measurement Technologies, includes three application areas: Geosystems, Metrology and Technology, that provide systems to design, measure and position objects, and process and present data.

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Hexagon (HEXAB SS)

Octave Intelligence: Forced Selling Meets a Quality Software Spin-off

Hexagon, a Swedish industrial company, is spinning off its software business, Octave. Regular-way trading in the US begins May 28, 2026.

Richard Howe

Weekly Update (LBTYA, MEDXF, APTV/CGNT)

In late May, Hexagon AB (Nasdaq Stockholm: HEXA B) will spin-off its software business, Octave Intelligence. Octave (represents ~25% of total...

Richard Howe

Hexagon AB (STO: HEXA-B) To Spin-Off Octave in H1 2026

Hexagon to split into two entities: Hexagon focused on industrial tech and Octave Intelligence Plc as a pure-play asset-centric software business,...

GSBR Research

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

Weekly Update (IAC/MGM, OCTV, HOH.V)

Healthcare’s relative performance to the S&P 500 is at a historic low. According to Bank of America, the sector’s relative forward P/E now sits at...

Richard Howe

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52-week Range

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Octave Intelligence: Forced Selling Meets a Quality Software Spin-off

Hexagon, a Swedish industrial company, is spinning off its software business, Octave. Regular-way trading in the US begins May 28, 2026.

Richard Howe

Weekly Update (LBTYA, MEDXF, APTV/CGNT)

In late May, Hexagon AB (Nasdaq Stockholm: HEXA B) will spin-off its software business, Octave Intelligence. Octave (represents ~25% of total...

Richard Howe

Hexagon AB (STO: HEXA-B) To Spin-Off Octave in H1 2026

​Hexagon to split into two entities: Hexagon focused on industrial tech and Octave Intelligence Plc as a pure-play asset-centric software business,...

GSBR Research

U.S. Dollar Breakdown: Bullish For Ex-U.S. Equities

Global indexes including the MSCI ACWI and ACWI ex-US are following in the MSCI EM index’s footsteps by breaking to new highs. This is bullish and...

Vermilion Research

Weekly Update (IAC/MGM, OCTV, HOH.V)

Healthcare’s relative performance to the S&P 500 is at a historic low. According to Bank of America, the sector’s relative forward P/E now sits at...

Richard Howe

Hexagon to split into two entities: Hexagon focused on industrial tech and Octave Intelligence Plc as a pure-play asset-centric software business,...