Krux
February 24, 2026
Cadence Closes €2.7B Hexagon D&E Acquisition in Push for Physical AI
Published: February 24, 2026 at 1:04 AM
Updated: February 24, 2026 at 1:04 AM
100-word summary
Cadence Design Systems completed its €2.7 billion acquisition of Hexagon's Design & Engineering business on February 23, paying 70% cash and 30% stock (roughly 3.2 million shares). The deal adds MSC Software's simulation tools like MSC Nastran and Adams to Cadence's multiphysics portfolio, coupling physics-based simulation with AI-driven design exploration. Cadence expects $160 million incremental revenue in 2026 but a 28-cent non-GAAP EPS dilution before turning accretive in 2027. The move signals Cadence is betting big on Physical AI workflows that marry traditional engineering simulation with machine learning.
What happened
Cadence Design Systems completed its €2.7 billion acquisition of Hexagon's Design & Engineering business on February 23, paying 70% cash and 30% stock (roughly 3.2 million shares). The deal adds MSC Software's simulation tools like MSC Nastran and Adams to Cadence's multiphysics portfolio, coupling physics-based simulation with AI-driven design exploration. Cadence expects $160 million incremental revenue in 2026 but a 28-cent non-GAAP EPS dilution before turning accretive in 2027.
Why it matters
The move signals Cadence is betting big on Physical AI workflows that marry traditional engineering simulation with machine learning.