Cadence Design Systems has announced a definitive agreement to acquire the Design & Engineering (D&E) business of Hexagon AB, including its MSC Software division, in a transaction valued at approximately €2.7 billion. The move is expected to significantly strengthen Cadence’s position in system design and multiphysics analysis, expanding its capabilities into structural analysis and simulation.
Under the agreement, 70 percent of the purchase price will be paid in cash, while the remaining 30 percent will be settled through the issuance of Cadence common stock to Hexagon. The deal, which is subject to regulatory approvals and customary closing conditions, is anticipated to close in the first quarter of 2026.
The acquisition will add Hexagon’s well-established simulation platforms to Cadence’s growing Intelligent System Design strategy. Hexagon’s D&E business is known for its flagship products MSC Nastran and Adams, widely used in structural and multibody dynamics simulation across aerospace, automotive, and industrial sectors. These tools are regarded as critical for analyzing and validating mechanical system performance, precision, and reliability.
Cadence, historically focused on semiconductor and electronic system design, has been expanding into system-level analysis to address increasing demand for integrated engineering workflows. The company entered the structural analysis market with the acquisition of Beta CAE in 2024. By combining Hexagon’s mechanical solvers with its existing strengths in electromagnetics, electrothermal analysis, and computational fluid dynamics, Cadence aims to deliver a comprehensive multiphysics platform that supports earlier and more efficient simulations in the design process.
The growing convergence of electrical and mechanical systems has created new requirements for multiphysics simulations, particularly in industries transitioning toward electric and autonomous vehicles, advanced materials, and robotics. In this context, Hexagon’s D&E technologies are expected to play an important role in physical AI applications, where accurate modeling of real-world motion and interactions is critical.
“The addition of Hexagon’s D&E world-class simulation capabilities expands our vision of Intelligent System Design to encompass the full spectrum of physical behavior,” said Anirudh Devgan, president and CEO of Cadence. “This will be a pivotal step in enabling our customers to design the complex, converged systems of tomorrow.”
Hexagon’s D&E business reported revenue of approximately $280 million in 2024 and employs more than 1,100 staff across research, development, sales, and support functions worldwide. Its solutions are currently used by leading automotive and aerospace companies, including Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE Systems, and Boeing. These firms rely on simulation workflows to optimize vehicle dynamics, structural integrity, and system reliability.
In addition to MSC Nastran and Adams, Hexagon’s portfolio includes tools for multiphysics analysis, system dynamics, metal forming, and autonomous driving simulation, offering complementary capabilities to Cadence’s portfolio. The integration of these technologies is intended to provide customers with a more unified engineering environment, reduce design-to-delivery timelines, and broaden Cadence’s reach into mission-critical engineering sectors.
If completed, the transaction will mark one of Cadence’s largest acquisitions to date.
