STOCKHOLM, Sweden, Sep 5, 2025 – Hexagon AB has agreed to sell its Design & Engineering business (D&E), including the business formerly known as MSC Software, to Cadence Design Systems in a 2.7bn EUR deal. The move shifts Hexagon’s focus toward core business areas.
“Today’s announcement is a step in our plan to streamline Hexagon’s portfolio and focus on the capture, measurement, and use of real-world data, while also strengthening our financial flexibility,” said Ola Rollén, chairman of the board for Hexagon. “Our D&E business is a leading provider of mission critical CAE software solutions and has delivered strong results since we acquired MSC in 2017, over which time we have been successfully transitioning the business to a subscription model. However, the engineering simulation market is evolving rapidly, with electronic design automation suppliers increasingly taking a leading role, a trend which is harder for Hexagon to follow. By transitioning D&E to Cadence, a global leader in this field, and establishing a long-term collaboration between our companies, we are creating a stronger future for our customers, employees, and shareholders.”
“D&E’s comprehensive portfolio of solutions is well positioned to support Cadence’s Multiphysics System Analysis business, with compelling opportunities for synergistic growth ahead,” said Anders Svensson, president and CEO, Hexagon. “As we simplify and focus our portfolio, we can accelerate innovation and capital deployment in areas that bring greater synergies across our businesses and augment our market leading positions, both across our sensor portfolio and remaining, core software businesses.”
The deal is expected to close in the first quarter of 2026, pending approvals. Proceeds will support debt reduction and future acquisitions, while the planned separation of Octave signals shifts in both financial strategy and industry positioning.
Financial Impact
Hexagon’s D&E business contributed about 265 MEUR to its manufacturing division in 2024. The sale is expected to generate a gain, with details to be released in the third quarter 2025 interim report. Excluding D&E and Octave, software and services would account for more than 40% of revenue, with recurring revenue above 25%. The transaction signals both a financial realignment and a calculated pivot toward core technologies where sensors, robotics and software can drive long-term growth.
Source: Hexagon
About Hexagon
Hexagon AB, founded in 1975 and headquartered in Stockholm, Sweden, provides digital reality solutions by integrating sensors, software and autonomous technologies. Its products and services are used across sectors including manufacturing, construction, mining, agriculture, aerospace, automotive and defense. Core offerings include reality capture, intelligent positioning systems, industrial design and situational intelligence tools. The company has pursued a growth strategy through acquisition, completing more than 170 acquisitions since 2000. As of Dec. 31, 2024, it reported net sales of about €5.4B and employed approx. 24,800 people across 50 countries. The company continues to expand its global customer base, focusing on innovation and digital transformation.
About Cadence
Cadence Design Systems, Inc. is a U.S.-based technology firm that develops electronic design automation (EDA) tools, hardware, and IP for designing integrated circuits and electronic systems. Formed in 1988 through the merger of SDA Systems and ECAD, the company is headquartered in San Jose, CA. Cadence provides software and solutions for designing SoCs, PCBs, and complete electronic systems used in the semiconductor, automotive, aerospace and defense, telecommunications, and consumer electronics industries. Its tools support both digital and analog design workflows. As of 2024, Cadence reported annual revenue of approximately $4.64 billion and employed about 12,703 people globally. The company’s technology supports the design, verification, and optimization of complex electronics across various industries.