Hexagon AB, a Sweden-based technology group specializing in digital reality solutions, announced that it has entered into a definitive agreement to sell its Design & Engineering (D&E) business, including the former MSC Software, to Cadence Design Systems. The deal is valued at approximately $2.9 billion, with 30% of the payment made in Cadence common stock and the rest in cash.
Ola Rollén, Chairman of the Board at Hexagon, said, “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.” He added that transferring D&E to Cadence establishes “a stronger future for our customers, employees, and shareholders.”
Anders Svensson, President and CEO of Hexagon, emphasized that the transaction allows the company to sharpen its focus, stating, “As we simplify and focus our portfolio, we can accelerate innovation and capital deployment in areas that bring greater synergies across our businesses.” The D&E business contributed approximately $286 million to Hexagon’s revenues in 2024, exceeding the group's profitability averages. The deal is expected to close in the first quarter of 2026, subject to regulatory approvals, and will generate a gain to be disclosed in Hexagon’s third-quarter 2025 interim report. Proceeds will support corporate purposes, including debt reduction and potential acquisitions.
