- Cadence Design Systems, a specialist in electronic systems design software, is to acquire Beta CAE Systems International, a Swiss publisher of multi-domain simulation software for equipment design in the aerospace, defense, biomechanics, electronics, energy and other sectors.
- The $1.24 billion transaction will be paid in cash ($744 million) and the remainder in shares.
- Cadence’s announcement comes after its competitor Synopsys, a California-based specialist in electronic design automation (EDA) software, acquired Ansys, a US-based provider of multi-physics simulation and analysis solutions, in January 2024.
“Cadence entered the multiphysics space several years ago through organic innovations and acquisitions. This strategic acquisition reaffirms our commitment to continued growth in this critical area,” said Dr. Anirudh Devgan, President and CEO of Cadence.
Cadence believes that the increasing complexity of systems and the time-to-market pressures associated with the accelerating convergence of mechanical and electrical technologies, as well as the digital transformation in various industries, necessitate the use of multiphysics simulation solutions early in the design cycle. In recent years, the American company has expanded its systems analysis portfolio to offer a multiphysics platform including electromagnetic (EM), electrothermal (ET) and computational fluid dynamics (CFD) solutions. With the acquisition of Beta CAE, Cadence gains tools for structural and mechanical analysis.
Beta CAE is well established in the automotive sector. “For over twenty years, we have led the evolution of engineering simulation, first establishing our reputation in the land mobility sector, then extending it into aerospace, defense, biomechanics, electronics, energy and other industries,” said Panagiotis Kouvrakis, Chairman of Beta CAE, whose solutions are used by the world’s top ten automakers and most Formula 1 teams. Customers include Honda Motor, General Motors, Stellantis, Renault Group, Volvo Cars and Lockheed Martin.
Founded in 1997 and headquartered in Lucerne, Switzerland, Beta CAE has a main R&D center in Thessaloniki, Greece, and 13 other offices worldwide. Beta CAE generates annual sales of around $90 million. Cadence expects Beta CAE to contribute around $40 million to sales in 2024.
The acquisition is expected to close in the second quarter of 2024, subject to regulatory approvals and other customary closing conditions.
