Cadence to Acquire Hexagon’s Design & Engineering Business

World-renowned options will complement Cadence’s system evaluation portfolio for automotive, aerospace, industrial and robotics

Cadence (Nasdaq: CDNS) at present introduced it has entered right into a definitive settlement to purchase the Design & Engineering (“D&E”) enterprise of Hexagon AB, which incorporates its MSC Software enterprise—a pioneer in engineering simulation and evaluation options. This acquisition accelerates Cadence’s Intelligent System Design technique, considerably increasing the Cadence® System Design & Analysis portfolio and reinforcing its dedication to delivering complete options for the world’s most demanding design challenges. The addition of Hexagon’s confirmed D&E expertise and expertise will construct upon Cadence’s 2024 Beta CAE acquisition, enabling a meaningfully deeper presence within the multi-billion-dollar structural evaluation market.

Under the phrases of the settlement, Cadence pays roughly €2.7 billion for the enterprise, with 70% of the consideration to be paid in money and 30% to be paid by the issuance of Cadence frequent inventory to Hexagon.

Accelerating electrical-mechanical hyperconvergence is driving the sturdy want for extra multiphysics simulations earlier within the design cycle. Leveraging its computational software program experience, Cadence has steadily constructed out a compelling system evaluation portfolio spanning electromagnetics, electrothermal and CFD, and established a foundational place in structural evaluation with Beta CAE. With clients more and more looking for seamless engineering workflows, including Hexagon D&E’s famend mechanical solvers will equip Cadence to ship a complete, unified, end-to-end multiphysics platform.

Hexagon’s D&E enterprise is famend for its flagship merchandise, MSC Nastran and Adams, that are well known as trade requirements in structural and multibody dynamics simulation. These applied sciences are integral to the design and validation of advanced mechanical programs, notably within the aerospace and automotive sectors, the place efficiency, precision and reliability are paramount. Additionally, Adams’ multibody dynamics capabilities are poised to play a vital function within the thrilling and rising fields of robotics and bodily AI, the place correct simulation of real-world movement and interactions is important. The acquisition may even convey a powerful portfolio of extremely complementary options in multiphysics evaluation, system dynamics, metallic forming and autonomous driving simulation.

“Cadence has lengthy been on the forefront of innovation in computational software program for semiconductors and digital programs,” stated Anirudh Devgan, Cadence’s president and chief govt officer. “By including Hexagon’s D&E world-class simulation capabilities, we’ll develop our imaginative and prescient of Intelligent System Design to embody the complete spectrum of bodily habits—from electromagnetics and fluids to constructions and movement. This might be a pivotal step in enabling our clients to design the advanced, converged programs of tomorrow.”

The acquisition will permit Cadence to serve a broader buyer base, together with main aerospace and automotive OEMs and Tier 1 suppliers similar to Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE and Boeing, amongst others, who use Hexagon’s D&E options for mission-critical simulation workflows. These options are important for optimizing structural integrity, car dynamics and system reliability, particularly as industries transition towards electrical automobiles, autonomous programs and superior supplies.

The incoming enterprise generated roughly $280 million in income in 2024, with over 1,100 workers throughout a number of world websites. It has world-class R&D, gross sales and help groups with deep area experience and powerful ecosystem partnerships.

The transaction is predicted to shut within the first quarter of 2026, topic to regulatory approvals and customary closing circumstances.

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