News
Cadence completes acquisition of Hexagon design and engineering business
Monday, February 23, 2026 at 10:25 PM
Cadence has finalized its acquisition of Hexagon's design and engineering business units. The deal is intended to integrate multiphysics simulation and analysis capabilities into Cadence's existing electronic design automation and AI workflow, enhancing its offerings for complex physical AI and system design.
Context
Cadence Design Systems officially completed its €2.7 billion acquisition of Hexagon’s Design and Engineering business on February 23, 2026. The transaction was funded through 70% cash and 30% Cadence common stock, involving the issuance of approximately 3.2 million shares. The deal integrates MSC Software and its flagship MSC Nastran and Adams solutions into the Cadence multiphysics portfolio, significantly expanding its footprint in structural analysis and multibody dynamics.
This acquisition is central to Cadence’s push into Physical AI, targeting high-growth sectors like automotive, aerospace, and robotics. Financially, the deal is expected to contribute $160 million to Cadence’s 2026 revenue. While the integration is projected to be 28 cents dilutive to non-GAAP earnings per share in 2026, the company expects the transaction to become accretive in 2027. This move follows the 2024 acquisition of BETA CAE, cementing Cadence’s leadership in end-to-end system design and simulation.
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