Octave strengthens Physical Security portfolio with acquisition of VXG Inc.

Octave, the forthcoming software spinoff from Hexagon AB, has announced the acquisition of VXG Inc., a provider of cloud-native video management software, for an undisclosed amount. The transaction, which was disclosed on May 5, 2026, is expected to enhance Octave's physical security portfolio by integrating VXG's advanced capabilities into its existing offerings.

The acquisition of VXG is strategically significant for Octave as it seeks to bolster its AI-enhanced cloud capabilities within the physical security sector. VXG's platform is designed to serve a variety of industries, including finance, retail, healthcare, and public safety, enabling organizations to manage small to mid-sized security installations effectively. The integration of VXG's technology will allow Octave to provide more comprehensive solutions that include intelligent monitoring, alerts, and evidence-sharing workflows, all powered by AI-driven analytics.

Prior to the acquisition, Octave and VXG had established a partnership in June 2025, during which Hexagon launched a cloud-based video management system utilizing VXG's technology. By bringing VXG in-house, Octave gains full control over its technology stack, which is anticipated to facilitate future integrations and product enhancements. This move aligns with Octave's vision of delivering cloud-first solutions that prioritize intelligence and scalability, as articulated by CEO Mattias Stenberg.

VXG's leadership team, including CEO Yaro Lisitsyn, will continue to lead the development of the cloud roadmap, ensuring continuity for existing customers and partners. The company reported revenues of approximately $1 million in 2025 and will be fully integrated into Octave's Protect workflow environment starting May 2026. This consolidation is expected to streamline operations and enhance service offerings across Octave's portfolio.

The acquisition of VXG reflects broader trends in the technology sector, where companies are increasingly focusing on cloud-based solutions to meet the evolving demands of security and surveillance. As organizations prioritize digital transformation and seek to leverage advanced technologies like AI, Octave's strengthened position in the market is likely to enhance its competitive edge. The deal underscores the growing importance of integrated security solutions that can adapt to various industry needs, indicating a continued shift towards cloud-centric operational models in the security landscape.