Cadence Acquires BETA CAE Systems for $1.24 Billion

Cadence Design Systems announced its acquisition of BETA CAE Systems International for a staggering $1.24 billion. The deal, structured as a combination of cash and stock, marks a significant move for Cadence as it delves into the structural analysis segment and propels growth within its intelligent system design business.

Strengthening Commitment to Multiphysics Space

Cadence's Chief Executive, Anirudh Devgan, expressed excitement about the acquisition, emphasizing its role in deepening the company's commitment to the multiphysics space. As mechanical and electrical hyperconvergence gains momentum, coupled with digital transformation across various industries, the demand for multiphysics simulations early in the design cycle has surged.

Anticipated Financial Impact

BETA CAE currently boasts an annual revenue of approximately $90 million. Cadence anticipates that this acquisition will bolster its 2024 revenue by an estimated $40 million.

Expected Closure in Q2

The acquisition is slated to close in the second quarter, marking a new chapter in Cadence's journey towards innovation and expansion within the electronic systems and software landscape.