Hexagon Completes Sale of Business to Cadence
Hexagon AB has completed the sale of its Design & Engineering business to Cadence Design Systems, Inc. The deal was valued at approximately €2.7 billion, paid in a combination of cash and Cadence stock.
- The sale is part of Hexagon's strategy to streamline its business and focus on core areas like sensors, robotics, and real-world data capture. Hexagon's leadership noted the engineering simulation market is increasingly led by electronic design automation suppliers, a trend that was difficult for the company to follow. - In 2024, the divested Design & Engineering business generated approximately €265 million ($280 million) in revenue with a profitability level above the average for the Hexagon group. - The acquisition includes Hexagon's MSC Software unit and its flagship products, MSC Nastran and Adams, which are widely used for structural and multibody dynamics simulation in the aerospace and automotive industries. - For Cadence, this purchase accelerates its "Intelligent System Design" strategy, aiming to provide a comprehensive, end-to-end multiphysics simulation platform by combining its own software with the newly acquired mechanical simulation tools. - This deal significantly expands Cadence's customer base, adding major aerospace and automotive clients such as the Volkswagen Group, BMW, Toyota, Lockheed Martin, and Boeing. - The acquisition builds on Cadence's 2024 purchase of Beta CAE Systems and intensifies its competition with rivals like Synopsys (which recently acquired Ansys) and Siemens in the growing system analysis market. - As part of the transaction, more than 1,100 Hexagon employees from the Design & Engineering business will transition to Cadence. - Cadence aims to leverage the integrated portfolio to lead in the emerging field of "Physical AI," which involves combining high-fidelity, physics-based simulations with AI-driven design.
