Hexagon to Sell Design Engineering Business for EUR2.7 Billion

Hexagon AB is selling its design engineering business for EUR2.7 billion. The company specializes in metrology systems, geospatial solutions, and computer-aided design, manufacturing, and engineering software. The products are primarily used in inspection, construction, infrastructure, natural resources, and public security sectors, with a geographical distribution of 34.6% in Europe/Middle East/Africa, 38.7% in the Americas, and 26.7% in Asia.

Cadence Design Systems, Inc. (CDNS) has announced its intention to acquire the Design & Engineering (D&E) business of Hexagon AB, a leading provider of metrology systems, geospatial solutions, and computer-aided design, manufacturing, and engineering software. The acquisition, valued at approximately €2.7 billion, will see Cadence pay 70% of the consideration in cash and 30% in common stock to Hexagon.

The deal is set to close in the first quarter of 2026 and will significantly expand Cadence's portfolio, particularly in the structural analysis market. The acquisition aligns with Cadence's Intelligent System Design strategy, which aims to deliver comprehensive solutions for complex design challenges. The addition of Hexagon's proven D&E technology and talent will complement Cadence's existing portfolio, including the 2024 Beta CAE acquisition.

Hexagon's D&E business, which generated approximately $280 million in revenue in 2024, includes over 1,100 employees across multiple global sites. 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, who use Hexagon's D&E solutions for mission-critical simulation workflows.

The transaction is expected to have a meaningful impact on Cadence's financial performance, with the addition of Hexagon's revenue stream and talent pool. The acquisition also underscores Cadence's commitment to delivering innovative and reliable solutions in the design engineering sector.

References:
[1] https://www.nasdaq.com/articles/cadence-buy-design-engineering-business-hexagon-ab