American software company Cadence has announced the €2.7 billion acquisition of the design and engineering branch of Sweden’s Hexagon. The deal includes Hexagon’s MSC software business, known for its engineering simulation and analysis tools. Hexagon’s flagship products, MSC Nastran and Adams, are widely used for designing and validating complex mechanical systems.

Cadence stated that the acquisition will strengthen its emerging robotics and physical AI software offerings, enabling improved real-world motion simulations and system interactions. Anirudh Devgan, Cadence president, said: “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. This will be a pivotal step in enabling our customers to design the complex, converged systems of tomorrow.”

The payment structure for the transaction is set at 70% in cash and 30% in Cadence stock. This acquisition is expected to integrate Hexagon’s advanced simulation technologies with Cadence’s existing software portfolio, enhancing capabilities across robotics, AI, and system-level design.

The MSC software suite, including Nastran and Adams, allows engineers to simulate real-world conditions, from mechanical stresses and vibrations to motion dynamics. Cadence highlighted that this combination will help customers accelerate development cycles, reduce physical prototyping needs, and improve the accuracy of system-level simulations.

By leveraging Hexagon’s expertise, Cadence aims to expand into applications where physical simulation is critical, including automotive, aerospace, industrial machinery, and emerging robotics platforms. The move aligns with Cadence’s strategic focus on Intelligent System Design, combining electronics, software, and now physical simulation to address increasingly complex engineering challenges.

Industry analysts noted that integrating Hexagon’s capabilities with Cadence’s existing tools could set a new benchmark for end-to-end system simulation. The acquisition positions Cadence to better support customers in developing advanced robotics and AI-driven products while maintaining high fidelity in modeling and testing real-world physical interactions.

The transaction is expected to close following regulatory approvals and customary closing conditions. Upon completion, Hexagon’s MSC business will operate as part of Cadence’s broader software ecosystem, contributing to the company’s vision of converging electronics, software, and mechanical simulation in one unified platform.

This deal marks one of the largest acquisitions in Cadence’s recent history and underscores the growing importance of integrated physical and digital system design for industries seeking advanced automation, AI-driven robotics, and high-performance engineering solutions.