Cadence, a provider of computational software and Intelligent System Design solutions, has announced a definitive agreement to acquire the Design & Engineering business of Hexagon AB, including MSC Software, for approximately $2.9 billion. The transaction, structured with 70% cash and 30% Cadence common stock, is expected to close in the first quarter of 2026, subject to regulatory approval. The move strengthens Cadence’s position in the multiphysics simulation and structural analysis markets, following its 2024 acquisition of Beta CAE.
Hexagon’s flagship products, MSC Nastran and Adams, are widely used in aerospace and automotive design, and their integration will expand Cadence’s multiphysics platform across electromagnetics, fluids, structures, and motion. The acquired business unit generated around $280 million in revenue in 2024 and employs more than 1,100 professionals across global sites. Customers include leading manufacturers such as Volkswagen, BMW, Toyota, Lockheed Martin, Boeing, and BAE Systems.
Anirudh Devgan, President and CEO of Cadence, 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.”