Cadence to Acquire Hexagon's Design & Engineering Business for $2.7 Billion

Cadence Design Systems has agreed to acquire Hexagon's Design & Engineering business for €2.7 billion. The deal expands Cadence's capabilities in structural analysis and multiphysics simulation markets and is expected to close in Q1 2026. Hexagon's D&E business is known for its flagship products MSC Nastran and Adams, which are industry standards in structural and multibody dynamics simulation. The acquisition will integrate Hexagon's advanced mechanical solvers with Cadence's existing solutions, offering a comprehensive, unified multiphysics platform.

Cadence Design Systems (CDNS) has announced a definitive agreement to acquire Hexagon AB's Design & Engineering (D&E) business for approximately €2.7 billion. The acquisition aims to expand Cadence's capabilities in structural analysis and multiphysics simulation markets and is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions [1].

The acquisition includes Hexagon's MSC Software business, which is renowned for its engineering simulation and analysis solutions. The D&E business generated approximately $280 million in revenue in 2024 and employs over 1,100 individuals across various global locations [1][2][3]. The business is known for its flagship products, MSC Nastran and Adams, which are industry standards in structural and multibody dynamics simulation [1][3].

Cadence plans to pay 70% of the consideration in cash and 30% through the issuance of its common stock to Hexagon [1][2]. The acquisition will integrate Hexagon's advanced mechanical solvers with Cadence's existing solutions, offering a comprehensive, unified multiphysics platform. This move aligns with Cadence's Intelligent System Design strategy, which aims to encompass the full spectrum of physical behavior—from electromagnetics and fluids to structures and motion [1].

The acquisition will enable 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 [1]. These solutions are essential for optimizing structural integrity, vehicle dynamics, and system reliability, especially as industries transition toward electric vehicles, autonomous systems, and advanced materials [1].

The acquisition is part of Cadence's ongoing efforts to expand its design and analysis portfolio and Hexagon's goal to streamline its portfolio [2]. Cadence's president and CEO, Anirudh Devgan, stated, "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" [1][3].

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://finance.yahoo.com/news/cadence-buy-hexagon-d-e-094559861.html