Hexagon AB announced it has completed the previously disclosed sale of its Design & Engineering business to Cadence Design Systems for an aggregate purchase price of approximately €2.7 billion, consisting of cash and Cadence common stock.
At closing, Hexagon received approximately €2.7 billion in total consideration, including around 3.2 million shares of Cadence common stock, representing about 30% of the total consideration based on the applicable volume-weighted average share price under the transaction agreement. The remainder of the consideration was paid in cash. As previously announced, and net of tax, transaction costs and currency impacts, the transaction is expected to generate a gain of around €1.4 billion.
The divestiture aligns with Hexagon’s ongoing portfolio strategy to build focused, market-leading positions and to channel investment into areas that create greater synergies across its core precision measurement, positioning and robotics solutions portfolio, including associated software businesses.
Hexagon said it intends to use the proceeds for general corporate purposes, which may include de-leveraging and funding future acquisitions aligned with its long-term profitable growth strategies at both Hexagon and Octave. The planned separation of Octave, if approved, remains on track for the first half of 2026.
From a financial standpoint, the Design & Engineering business contributed approximately €265 million in revenue to Hexagon’s Manufacturing Intelligence business area in 2024, with profitability above the Hexagon group average.
