Cadence Expands Portfolio with Major Acquisition, Strengthening Intelligent System Design Strategy.

Cadence Design Systems has agreed to acquire Hexagon's Design & Engineering sector, which includes MSC Software, for approximately EUR 2.7 billion. The deal aims to enhance Cadence's Intelligent System Design strategy and strengthen its position in the structural analysis market. Cadence will finance 70% of the deal in cash and settle the remaining 30% with its common stock. The acquisition is valued at approximately EUR 2.7 billion.

Cadence Design Systems (CDNS) has agreed to acquire Hexagon AB's Design & Engineering (D&E) business, including the MSC Software unit, for approximately €2.7 billion. The transaction is structured with 70% paid in cash and 30% through the issuance of Cadence common stock to Hexagon.

The acquisition aims to bolster Cadence's Intelligent System Design strategy and enhance its position in the structural analysis market. MSC Software's flagship products, MSC Nastran and Adams, are widely recognized industry standards in structural and multibody dynamics simulation. These tools are crucial for the design and validation of complex mechanical systems, particularly in the aerospace and automotive sectors.

Cadence expects the acquisition to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. The incoming business generated approximately $280 million in revenue in 2024, with over 1,100 employees across multiple global sites. Hexagon's D&E business is renowned for its world-class R&D, sales, and support teams with deep domain expertise and strong ecosystem partnerships.

The transaction is part of Hexagon's ongoing portfolio strategy to focus on the capture, measurement, and use of real-world data, while also strengthening its financial flexibility. Hexagon's CEO, Ola Rollén, stated that transitioning the D&E business to Cadence, a global leader in this field, will create a stronger future for customers, employees, and shareholders.

Cadence's President and CEO, Anirudh Devgan, noted that the acquisition will expand Cadence's vision of Intelligent System Design to encompass the full spectrum of physical behavior, enabling customers to design complex, converged systems of tomorrow.

References:
[1] https://www.cadence.com/en_US/home/company/newsroom/press-releases/pr/2025/cadence-to-acquire-hexagons-design--engineering-business.html
[2] https://www.marketscreener.com/news/cadence-design-systems-to-buy-hexagon-s-design-and-engineering-business-ce7d59d8df8cfe22
[3] https://hexagon.com/company/newsroom/press-releases/2025/hexagon-agrees-sale-of-design--engineering-business-to-cadence-for-27bn-eur
[4] https://www.investing.com/news/stock-market-news/hexagon-stock-jumps-6-on-27-bln-cadence-deal-for-msc-software-business-4226092