Cadence Design Systems has finalized its acquisition of Hexagon AB’s Design and Engineering (D&E) business, marking a significant expansion of its System Design and Analysis (SDA) capabilities. The transaction strengthens Cadence’s multiphysics simulation portfolio and aligns with its broader Intelligent System Design strategy.
The acquisition brings Hexagon D&E’s established simulation technologies, including MSC Software’s MSC Nastran and Adams, into the Cadence portfolio. These tools are widely used for structural analysis, multibody dynamics, and acoustics across aerospace, automotive, and industrial sectors. Their integration complements Cadence’s existing strengths in electronics design automation, computational fluid dynamics (CFD), and BETA CAE’s structural pre- and post-processing solutions.
With the addition of Hexagon’s D&E assets, Cadence aims to provide a more comprehensive, end-to-end multiphysics simulation platform. The combined offering is designed to support system-level modeling across mechanical, thermal, fluid, motion, and electronic domains. By consolidating these capabilities under a unified environment, the company seeks to streamline complex engineering workflows and improve cross-domain design optimization.
Cadence President and CEO Anirudh Devgan said the deal advances the company’s vision of intelligent system design by combining AI-driven computational software with physics-based analysis technologies. The integration is expected to support customers developing autonomous systems, robotics platforms, and advanced transportation technologies.
The move also positions Cadence to address emerging opportunities in Physical AI, an area that relies on high-fidelity simulation to train and validate artificial intelligence models. By linking detailed physics-based modeling with AI-assisted design exploration, the company aims to help engineers create digital representations that predict real-world system performance under varied operating conditions. Such capabilities are increasingly important in the development of intelligent vehicles and complex industrial systems.
The total purchase price is approximately €2.7 billion, including an estimated €150 million in transaction-related taxes owed by the acquired entities. The consideration is structured as 70 percent cash and 30 percent Cadence common stock.
Under its financial outlook, Cadence expects the acquired business to add approximately $160 million to 2026 revenue. On a non-GAAP basis, the transaction is projected to be approximately $0.28 dilutive to earnings per share in 2026 and accretive beginning in 2027.
