2.9 billion dollars Cadence Acquires the Design & Engineering Division of Hexagon AB

By Sebastian Gerstl | Translated by AI 1 min Reading Time

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Simulation specialist Cadence has announced plans to acquire the Design and Engineering division of the Swedish industrial electronics group Hexagon AB. The goal is to expand the multiphysics platform for automotive, aerospace, robotics, and more. The acquisition also includes the subsidiary MSC Software.

Headquarters of Cadence Design Systems in San Jose, California. The specialist in simulation and verification tools acquires the D&E division of the Swedish industrial electronics group Hexagon AB for 2.9 billion dollars. An essential part of the acquisition is the subsidiary MSC Software and its tools MSC Nastran and MSC Adams.(Image: free)
Headquarters of Cadence Design Systems in San Jose, California. The specialist in simulation and verification tools acquires the D&E division of the Swedish industrial electronics group Hexagon AB for 2.9 billion dollars. An essential part of the acquisition is the subsidiary MSC Software and its tools MSC Nastran and MSC Adams.
(Image: free)

Cadence acquires the Design and Engineering division of Hexagon AB. The purchase price amounts to approximately 2.9 billion dollars, with 70% in cash and 30% in stock. The acquisition is expected to be completed in the first quarter of 2026.

With the acquisition, Cadence strategically expands its offering in the field of multiphysics system analysis. Particularly in structural simulation, complemented by the acquisition of Beta CAE in 2024, this establishes a deeper market presence.

The acquisition also includes MSC Software, a company known for simulation software. Its simulation solutions, MSC Nastran and MSC Adams, are widely used in the aerospace and automotive industries. The integration of MSC Software is expected to help Cadence provide seamless workflows for electrical and mechanical co-designs.

The goal of the acquisition, according to their press release, is to create a comprehensive multiphysics platform that consistently represents structures, motion, electromagnetics, fluids, and thermal behavior. Cadence is thus responding to the increasing demand for simulations in the early development phases of complex systems.

The customers of the acquired division include global OEMs and suppliers such as Volkswagen, BMW, Toyota, Boeing, and Lockheed Martin. They use the solutions for safety-critical applications in autonomous systems, e-mobility, and robotics.

The acquired division generated revenue of around 280 million US dollars in 2024, according to Cadence and Hexagon AB, and employs over 1,100 staff members worldwide. This move not only strengthens Cadence's technological position but also brings in experienced teams and established partnerships.(sg)

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