SAN JOSE: Cadence Design Systems Inc. (Nasdaq: CDNS) said Thursday it has agreed to acquire the Design & Engineering business of Hexagon AB, including its MSC Software unit, in a €2.7 billion deal aimed at accelerating Cadence’s Intelligent System Design™ strategy and expanding its footprint in the structural analysis market.
Under the terms of the agreement, Cadence will pay 70% of the consideration in cash and the remaining 30% through newly issued common stock to Hexagon. The transaction is expected to close in the first quarter of 2026, pending regulatory approvals and customary conditions.
The acquisition builds on Cadence’s 2024 purchase of Beta CAE and strengthens its position in multiphysics simulation, adding mechanical solvers and flagship technologies such as MSC Nastran and Adams. These tools are widely used in aerospace, automotive, robotics and emerging physical AI applications.
“This acquisition marks a pivotal expansion of our Intelligent System Design vision,” said Cadence CEO Anirudh Devgan. “Hexagon’s D&E team brings world-class simulation capabilities that will allow us to deliver a unified platform for electromagnetics, fluids, structures and motion.”
Hexagon’s D&E business generated approximately $280 million in revenue in 2024 and employs more than 1,100 people globally. Its technologies are used by major OEMs and Tier 1 suppliers including Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE and Boeing.
Cadence said the deal will enable deeper integration of electrical and mechanical simulation workflows, addressing growing demand for early-stage multiphysics analysis in complex system design.