So, there are good reasons behind Cadence’s purchase of Hexagon D+E. Commercially, the Hexagon parts are adding a number of well-known customer names, but also technically there is a lot of interesting stuff that has the potential to give Cadence a real boost. Accelerating electrical-mechanical hyperconvergence is driving a strong need for more multiphysics simulations earlier in the design cycle. Leveraging its expertise in computational software, Cadence has steadily built a compelling systems analysis portfolio spanning electromagnetics, electrothermal engineering and CFD, and established a foundational position in structural analysis with Beta CAE. With customers increasingly seeking seamless engineering workflows, the addition of Hexagon D&E’s renowned mechanical solvers will equip Cadence to deliver a comprehensive, unified, end-to-end multiphysics platform.
Hexagon’s flagship solutions MSC Nastran and Adams included
Hexagon’s D&E business is known for its flagship products, MSC Nastran and Adams, which are widely recognized as industry standards in structural and multi-body dynamics simulation. These technologies are integral to the design and validation of complex mechanical systems, particularly in the aerospace and automotive sectors, where performance, precision and reliability are paramount.
In addition, Adams’ multi-body dynamics capabilities are poised to play a critical role in the exciting and emerging areas of robotics and physical AI, where accurate simulation of real-world motion and interactions is essential.
The acquisition will also provide an impressive portfolio of complementary solutions in multi-physics analysis, system dynamics, metal forming and autonomous driving simulation.
“Cadence has long been at the forefront of innovation in computational software for semiconductors and electronic systems,” said Anirudh Devgan. “By adding Hexagon’s world-class D&E simulation capabilities, we will expand our vision of intelligent system design to encompass the full spectrum of physical behavior – from electromagnetism and fluids to structures and motion. This will be a critical step in enabling our customers to design tomorrow’s complex, converged systems.”
Customer Additions from Volkswagen to Boeing and Lockheed Martin
Another interesting aspect of the acquisition is that Cadence gains a broader customer base. Here are names any PLM developer would want on their customer list: Leading aerospace and automotive OEMs and Tier 1 suppliers such as Volkswagen Group, BMW, Toyota, Lockheed Martin, BAE, and Boeing, among others, use Hexagon’s D&E solutions for mission-critical simulation workflows. These solutions are critical to optimizing structural integrity, vehicle dynamics, and system reliability, especially as industries transition to electric vehicles, autonomous systems, and advanced materials.
Financially, it will also be a substantial revenue addition for Cadence. The inbound business generated approximately $280 million in revenue by 2024, with over 1,100 employees across multiple global locations. It has world-class R&D, sales, and support teams with deep domain expertise and strong ecosystem partnerships.
Under the terms of the agreement, Cadence will pay approximately €2.7 billion for the business, of which 70% of the consideration will be paid in cash and 30% will be paid through the issuance of Cadence common shares to Hexagon.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
