Hexagon AB announced the completion of the previously announced sale of its Design & Engineering business (“D&E”) to Cadence Design Systems, Inc., for an aggregate purchase price of approximately 2.7bn EUR in cash and Cadence stock.
The transaction is consistent with Hexagon’s ongoing portfolio strategy to create focused market-leading positions and channel investment into areas that bring greater synergies across its core precision measurement, positioning and robotics solutions portfolio including the associated software businesses.
At closing Hexagon received approximately 2.7bn EUR in aggregate consideration, including approximately 3.2 million shares of Cadence common stock (representing approximately 30% of the total consideration based on the applicable volume-weighted average share price calculated pursuant to the terms of the transaction agreement) and the remainder was paid in cash. As previously announced, net of tax, transaction costs and currency impacts, the sale is expected to result in a gain of around 1.4bn EUR.
Hexagon intends to use proceeds from the transaction for general corporate purposes. This may include de-leveraging and funding future acquisitions aligned with the strategies for long-term profitable growth at both Hexagon and Octave, which if approved, remains on track to be separated during the first half of 2026.
In terms of financial impact, D&E contributed approximately 265 MEUR to the revenues of the Manufacturing Intelligence business area in 2024, at a profitability level above Hexagon group averages.
