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Cadence, a leader in computational software, has announced the acquisition of Hexagon AB’s Design & Engineering (D&E) business, including MSC Software, to strengthen its Intelligent System Design strategy. This strategic move expands Cadence’s capabilities in multiphysics simulation and system analysis, targeting high-growth sectors like automotive, aerospace, and robotics.
Cadence to acquire Hexagon’s D&E business for €2.7 billion.
Includes MSC Software, a leader in engineering simulation solutions.
Enhances Cadence’s multiphysics platform for AI and system design.
Targets automotive, aerospace, and robotics with MSC Nastran and Adams.
Acquisition builds on 2024 Beta CAE deal, expanding structural analysis.
Expected to close in Q1 2026, pending regulatory approvals.
On September 3, 2025, Cadence entered a definitive agreement to acquire Hexagon’s Design & Engineering business for approximately €2.7 billion, with 70% in cash and 30% in Cadence common stock. This acquisition, which includes MSC Software, significantly expands Cadence’s System Design & Analysis portfolio. It builds on the 2024 Beta CAE acquisition, deepening Cadence’s presence in the structural analysis market and reinforcing its leadership in multiphysics simulation solutions.
Hexagon’s D&E business brings industry-standard tools like MSC Nastran and Adams, widely used for structural and multibody dynamics simulation. These solutions are critical for designing complex mechanical systems in aerospace and automotive industries. With the rise of electric vehicles and autonomous systems, the acquisition equips Cadence to deliver unified, end-to-end multiphysics platforms, addressing the growing demand for electrical-mechanical hyperconvergence and early-stage design simulations.
The acquisition positions Cadence to serve top-tier customers like Volkswagen Group, BMW, Toyota, Lockheed Martin, and Boeing. MSC Software’s tools optimize structural integrity, vehicle dynamics, and system reliability, making them essential for mission-critical workflows in automotive, aerospace, and emerging fields like robotics and physical AI. The addition of complementary solutions in metal forming and autonomous driving simulation further strengthens Cadence’s portfolio.
Hexagon’s Adams technology is poised to play a pivotal role in robotics and physical AI, enabling precise simulation of real-world motion and interactions. This capability aligns with Cadence’s vision to support the design of next-generation systems. As quoted by Anirudh Devgan, Cadence’s president and CEO, “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.”
The D&E business generated $280 million in revenue in 2024 and employs over 1,100 professionals globally. With strong R&D, sales, and support teams, the acquisition enhances Cadence’s ability to deliver innovative solutions and maintain ecosystem partnerships. The transaction is expected to close in Q1 2026, subject to regulatory approvals, positioning Cadence for continued growth in the multi-billion-dollar system analysis market.
This acquisition marks a significant step for Cadence in advancing its Intelligent System Design strategy. By integrating Hexagon’s D&E expertise, Cadence is well-positioned to lead in AI-driven system design, delivering comprehensive solutions for the world’s most complex engineering challenges.
Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence’s Intelligent System Design strategy, are essential for the world’s leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world’s top 100 best-managed companies.
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