Cadence to Buy Hexagon Design & Engineering Business

Cadence announces a definitive agreement to purchase the Design & Engineering (D&E) business of Hexagon AB, which includes its MSC Software business—a part of the business focused on engineering simulation and analysis solutions.

This acquisition helps to advance Cadence’s Intelligent System Design strategy, by expanding the Cadence System Design & Analysis portfolio. Cadence reports that the addition of Hexagon’s D&E technology and talent will build on Cadence’s 2024 Beta CAE acquisition, enabling a stronger presence in the multi-billion-dollar structural analysis market.

Under 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.

To date, Cadence has built out a system analysis portfolio spanning electromagnetics, electrothermal and CFD, and established a position in structural analysis with Beta CAE. Cadence notes that by adding Hexagon D&E’s mechanical solvers, this will equip Cadence to deliver a comprehensive, unified, end-to-end multiphysics platform.

Hexagon’s D&E business is recognized for its flagship products, MSC Nastran and Adams, which are applicable in structural and multibody dynamics simulation. These technologies are integral to the design and validation of complex mechanical systems, particularly in the aerospace and automotive sectors.

Additionally, Adams’ multibody dynamics capabilities can play a role in the emerging fields of robotics and physical AI. The acquisition will also bring a portfolio of solutions in multiphysics analysis, system dynamics, metal forming and autonomous driving simulation.

“Cadence has long been at the forefront of innovation in computational software for semiconductors and electronic systems,” says Anirudh Devgan, Cadence president and chief executive officer. “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 behavior—from electromagnetics and fluids to structures and motion.”

The acquisition will expand Cadence's customer base, including aerospace and automotive OEMs and Tier 1 suppliers who use Hexagon’s D&E solutions for simulation workflows. 

The incoming business generated approximately $280 million in revenue in 2024, with over 1,100 employees across multiple global sites. It has R&D, sales and support teams.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.

Sources: Press materials received from the company and additional information gleaned from the company’s website.