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

Cadence Design Systems, Inc., a leader in electronic design automation (EDA) software, announced on September 4, 2025, its agreement to acquire Hexagon AB's Design & Engineering (D&E) business, including MSC Software, for €2.7 billion. The deal, comprising 70% cash and 30% Cadence common stock, is expected to close in the first quarter of 2026, pending regulatory approvals.

This acquisition aims to enhance Cadence's system analysis capabilities, particularly in structural and multibody dynamics simulation, and to expand its presence in the aerospace, automotive, industrial, and robotics sectors. The D&E business generated approximately €265 million in revenue in 2024 and employs over 1,100 people globally.

Anirudh Devgan, Cadence's president and CEO, 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."

Hexagon's D&E business is renowned for its flagship products, MSC Nastran and Adams, which are widely recognized as industry standards 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, where performance, precision, and reliability are paramount.

This acquisition follows Cadence's 2024 purchase of BETA CAE Systems International AG for $1.24 billion, which expanded its capabilities in the automotive and aerospace design software market. BETA CAE's solutions include ANSA for pre-processing, META for post-processing, EPILYSIS for structural analysis, and FATIQ for fatigue and failure analysis.

The integration of Hexagon's D&E business is expected to provide Cadence with 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. These companies use Hexagon’s D&E solutions for mission-critical simulation workflows essential for optimizing structural integrity, vehicle dynamics, and system reliability.

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

Cadence's strategic acquisitions of BETA CAE and Hexagon's D&E business underscore its commitment to expanding its system analysis portfolio and strengthening its position in the engineering simulation and analysis market.