WASHINGTON (dpa-AFX) - Cadence (CDNS) Thursday said it has agreed to buy the Design & Engineering business of Hexagon AB, which includes its MSC Software business.
The acquisition accelerates Cadence's Intelligent System Design strategy, significantly expanding the Cadence System Design & Analysis portfolio and reinforcing its commitment to delivering comprehensive solutions for the world's most demanding design challenges.
The addition of Hexagon's proven D&E technology and talent will build upon Cadence's 2024 Beta CAE acquisition, enabling a meaningfully deeper presence in the multi-billion-dollar structural analysis market.
Under the terms of the agreement, Cadence will pay approximately €2.7 billion for the business, with 70% of the consideration to be paid in cash and 30% to be paid through the issuance of Cadence common stock to Hexagon.
The acquisition will allow Cadence to serve a broader customer base, including leading aerospace and automotive OEMs and Tier 1 suppliers such as Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE and Boeing, among others, who use Hexagon's D&E solutions for mission-critical simulation workflows.
The incoming business generated about $280 million in revenue in 2024, with over 1,100 employees across multiple global sites. The transaction is expected to close in the first quarter of 2026.
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