Hexagon Composites ASA has moved to acquire the technology testing
company Digital Wave Corporation, based in Denver, Colorado. With this
acquisition, Hexagon Composites will fully integrate capabilities for
testing and requalification of high-pressure cylinders.
“Hexagon has worked successfully with Digital Wave for three years to
apply Modal Acoustic Emissions (MAE) technology to test Type 4
cylinders. With this acquisition we take control of the unique testing
process, which effectively reduces the operators’ down time, while
ensuring an approved, safe and reliable requalification method. We are
further enhancing our leadership position by obtaining the most advanced
capabilities and technology currently available,” said Jack Schimenti,
Executive Vice President of Hexagon Composites Group. “We believe that
this technology has the potential of fulfilling the holy grail of
real-time health monitoring of composite cylinders.”

Digital Wave is a leading provider of modal acoustic emission (MAE)
requalification and ultrasonic examination (UE) testing of pressure
vessels. MAE is a relatively new and unique process that uses sound
waves to measure structural integrity in composite structures. It
greatly improves both routine re-qualifications and post-accident
inspections.
Operators of gas transportation modules in North America are required
to requalify their cylinders every five years. MAE testing collects
data from cylinders under pressure and provides a comprehensive
evaluation of the composite structure of each cylinder. UE is an
efficient alternative to the traditional hydro-testing of all-metal
cylinders.
“Hexagon Composites is a leader in the composite pressure cylinder
market and a great strategic fit for Digital Wave’s array of products
and patents,” adds Mike Gorman, CEO of Digital Wave Corporation. “It
provides a strong platform for the Company’s employees, who have
developed testing technology for all types of pressure vessels, to use
their talents to expand both the range of applications and global reach
for Digital Wave’s intellectual property. We are convinced that both
organizations complement each other in terms of products and services
and this will lead to a stronger position in the cylinder market.
Digital Wave reported revenues of USD 3.8 (NOK 31.4) million in 2017, with an adjusted EBITDA of USD 0.4 (NOK 3.0) million.
The agreed transaction value of Digital Wave is USD 7.5 million
(approx. NOK 61.8 million). The signing of a definitive agreement has
taken place on 26 October with expected closing in the fourth quarter of
2018.
The business will operate as a wholly owned subsidiary of Hexagon’s
US affiliate and will continue to research and develop new products and
services in this field.
Supporting Anticipated Production Activities
Hexagon is currently developing the tanks to support anticipated production activities as early as the 2020 timeframe. Production is planned to run for at least five years. Hexagon estimates the combined value for development and serial production to be in the range of USD 50 to 70 million (approximately NOK 0.4 billion to 0.6 billion).
Rick Rashilla, Senior Vice President of Hexagon Composites' Hydrogen Automotive business, said:
"This is a major contract for Hexagon and for the growing FCEV industry. Hexagon Composites is committed to investing resources into the success of this project and for the adoption of Hydrogen in combination with fuel-cell technology as a low-carbon alternative fuel for mobility applications. This selection further confirms our leading position as a light duty hydrogen tank developer for the FCEV industry."