Cadence to Acquire Hexagon’s Design & Engineering Unit to Boost Multiphysics System Design

Cadence Design Systems announced a definitive agreement to acquire the Design & Engineering (D&E) business of Hexagon AB, including MSC Software, for about €2.7 billion. The deal funds 70% in cash and 30% in Cadence common stock to Hexagon, and is expected to close in the first quarter of 2026, subject to regulatory approvals.

The acquisition accelerates Cadence’s Intelligent System Design strategy by expanding its System Design & Analysis portfolio and strengthening its presence in structural analysis alongside its existing electromagnetics, electrothermal, and CFD capabilities. Hexagon D&E brings flagship multiphysics solvers, notably MSC Nastran and Adams, which are industry standards for structural and multibody dynamics simulation. These tools will augment Cadence’s capabilities and enable a unified, end-to-end multiphysics platform that supports earlier, more integrated analyses during the design cycle.

This move enhances Cadence’s reach into aerospace, automotive, robotics, and industrial applications, complementing its Beta CAE acquisition from 2024. The combined solution set aims to drive convergence of electrical and mechanical design—supporting robotics, autonomous systems, physical AI, and electrified vehicle development. The deal also broadens Cadence’s customer base to major OEMs and Tier 1 suppliers including Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE, and Boeing.

Hexagon D&E generated about $280 million in revenue in 2024 and employs over 1,100 people across global sites, with strong R&D, sales, and support teams. The transaction signals Cadence’s push to offer comprehensive, converged simulation for tomorrow’s complex systems.