Hexagon Shares Rise on $3.15 Billion Deal for Design, Engineering Unit Sale

By Billy Gray

Hexagon shares rose after the Swedish measurement-technology group said it agreed to sell its design and engineering business to Cadence Design Systems for 2.7 billion euros ($3.15 billion).

Shares in Hexagon rose as much as 8% in European trading on Friday, leaving the stock up 3.2% in the year to date.

Cadence, a U.S. developer of software for semiconductor companies, will pay 70% of the price in cash and the remainder in stock, Hexagon said late Thursday. Hexagon expects to book a gain on the deal that will be disclosed alongside third-quarter results.

"This announcement is a step in our plan to streamline Hexagon's portfolio and focus on the capture, measurement, and use of real-world data, while also strengthening our financial flexibility," said Ola Rollen, chairman of the board of Hexagon.

While the D&E business delivered strong results since Hexagon acquired a company formerly known as MSC Software in 2017, it struggled to keep pace with fast-changing trends in the engineering simulation market, the company said. Moving the business into Cadence's hands will strengthen long-term viability for customers and shareholders, Hexagon said.

The deal is expected to close in the first quarter of 2026, subject to conditions and approvals, it said.

Hexagon got a good price, and the deal should set a benchmark for the planned spinoff of its Asset Lifecycle Intelligence unit, analysts at Berenberg wrote in a note to clients.

Write to Billy Gray at william.gray@wsj.com

(END) Dow Jones Newswires

September 05, 2025 11:24 ET (15:24 GMT)