US technology firm Cadence has agreed to acquire the design and engineering (D&E) division of Hexagon for around €2.7bn ($3.14bn).
Cadence will make 70% of the payment in cash and the remaining 30% through the issuance of its common stock to Hexagon.
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The D&E division includes the MSC Software business, which offers engineering simulation and analysis solutions.
This acquisition is set to bolster Cadence’s Intelligent System Design strategy, enhancing its System Design and Analysis portfolio.
The integration of Hexagon’s D&E technology and expertise will complement Cadence’s recent acquisition of Beta CAE in 2024.
Cadence has been expanding its system analysis portfolio, which includes electromagnetics, electrothermal, and CFD capabilities, while establishing a foundational presence in structural analysis through Beta CAE.
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By GlobalDataThe addition of Hexagon D&E’s mechanical solvers will enable Cadence to offer a unified multiphysics platform.
Hexagon’s D&E division provides products such as MSC Nastran and Adams, which are considered industry standards in structural and multibody dynamics simulation.
These technologies are crucial for the design and validation of intricate mechanical systems, specifically within the aerospace and automotive industries.
The acquisition will also enhance Cadence’s offerings in multiphysics analysis, system dynamics, metal forming, and autonomous driving simulation.
Cadence president and CEO Anirudh Devgan said: “By adding Hexagon’s D&E world-class simulation capabilities, we will expand our vision of Intelligent System Design to encompass the full spectrum of physical behaviour—from electromagnetics and fluids to structures and motion.”
In addition, the acquisition will enable Cadence to expand its customer base, which includes aerospace and automotive OEMs and Tier 1 suppliers such as Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE, and Boeing.
These companies rely on Hexagon’s D&E solutions for essential simulation workflows that optimise structural integrity, vehicle dynamics, and system reliability.
The D&E business generated approximately $280m in revenue in 2024 and employs more than 1,100 individuals across various global locations.
The transaction is anticipated to be finalised in the first quarter of 2026, pending regulatory approvals and standard closing conditions.
