Cadence Design Systems has formerly completed its acquisition of Beta CAE, a provider of multi-domain, engineering simulation solutions.
Cadence has continued to expanded its system analysis portfolio to build out a multiphysics platform including electromagnetics (EM), electrothermal (ET) and computational fluid dynamics (CFD) solutions, and with Beta CAE, Cadence says it will enter structural analysis, the largest system analysis segment.
Cadence says that by adding Beta CAE to its stable it will accelerates Cadence’s Intelligent System Design strategy by expanding its multiphysics system analysis suite with highly complementary products, enabling Cadence to offer a more comprehensive portfolio to its customers.
Beta CAE has a strong footprint among the automotive engineering sector, as well as being used in aerospace, industrial and healthcare industries, where increasing system complexity and time-to-market pressures are driving the need for multiphysics simulations early in the design cycle.
“Cadence entered the multiphysics space several years ago through organic innovation and acquisitions. This strategic acquisition reaffirms our commitment to continued growth in this critical domain,” said Cadence CEO Dr. Anirudh Devgan. “Combining our computational software expertise with Beta CAE’s rich technology and talent will enable us to offer a more comprehensive portfolio to customers, while opening significant new opportunities for Cadence by tapping into the structural analysis segment.
“These solutions are particularly important in automotive, where convergence of electrical and mechanical designs is further driven by an increasing shift towards electric vehicles, requiring deeper design team collaboration in integrated workflows.”
Under the terms of the agreement, Cadence will pay approximately $1.24 billion for the transaction, with 60 per cent of the consideration to be paid in cash and 40 per cent to be paid through the issuance of Cadence common stock to current Beta CAE shareholders.
Beta CAE has annual revenue of about $90 million, and Cadence continues to expect Beta CAE to contribute about $40 million to its 2024 revenue.
