Cadence (CDNS) Expands Analysis Portfolio With Hexagon Acquisition

Cadence Design Systems, Inc (CDNS) has agreed to acquire Hexagon AB’s Design & Engineering division, including MSC Software, for €2.7 billion. This move enhances Cadence’s Intelligent System Design strategy and expands its presence in structural analysis. The acquisition is expected to be completed in Q1 2026 pending regulatory approvals.

The deal will enable Cadence to offer a comprehensive platform for electromagnetics, CFD, and advanced structural analysis, crucial for industries like aerospace and automotive. This positions Cadence to cater to the increasing demand for multiphysics simulations early in the design process. The acquisition will also strengthen Cadence’s relationships with top-tier clients in various industries.

Cadence’s acquisition strategy has been instrumental in its growth, with recent deals including Beta CAE Systems International AG in 2024. The company’s stock performance has been strong, with a 41.2% increase in the past year. However, it currently holds a Zacks Rank #3 (Hold). Other top stocks in the computer software space include Manhattan Associates, Inc., PTC Inc., and Microsoft Corporation.

Amid a growing demand for data, an under-the-radar chipmaker is poised to capitalize on the market’s expansion. This company specializes in semiconductor products crucial for data centers, offering unique opportunities for growth. Investors looking for potential growth in the semiconductor sector should keep an eye on this stock for future developments.