Intergraph has created an independent subsidiary that will carry out all sensitive government work in the US after the company was acquired by Swedish firm Hexagon, according to Directions Magazine’s All Points Blog.

US laws do not allow foreign companies to bid for government contracts requiring a high level of security clearance.

The new company, called Intergraph Government Solutions Corporation, will essentially be autonomous, though all profits will go to Hexagon.

Intergraph Government Solutions Corporation will be controlled and overseen by a special proxy board consisting of three or more directors, rather than Hexagon management.

These directors are required to be independent of Intergraph and Hexagon with no prior affiliation to either party and must be approved by the US Defense Security Service (DSS). 

The directors have been identified and submitted for approval.

Intergraph, which makes software that helps companies visualise complex data and design factories, was bought by Hexagon for US$2.13bn in July.

Hexagon, which makes measuring instruments, has purchased Brown & Sharpe, Leica Geosystems and NovAtel in the past decade.