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STOCKHOLM - Hexagon AB announced Monday the completion of its sale of the Design & Engineering business to Cadence Design Systems, Inc. for approximately €2.7 billion in cash and stock, according to a press release statement.
The transaction included approximately 3.2 million shares of Cadence common stock, representing about 30% of the total consideration based on the applicable volume-weighted average share price, with the remainder paid in cash. Hexagon, with a market capitalization of $29.4 billion, currently trades at a P/E ratio of 40.85, and InvestingPro analysis suggests the stock is slightly overvalued relative to its Fair Value.
The sale is expected to generate a gain of around €1.4 billion after accounting for tax, transaction costs and currency impacts. Hexagon plans to use the proceeds for general corporate purposes, which may include reducing debt and funding future acquisitions.
The divested Design & Engineering unit contributed approximately €265 million to Hexagon’s Manufacturing Intelligence business area revenues in 2024, operating at a profitability level above the group average.
Hexagon stated the transaction aligns with its portfolio strategy to focus on precision measurement, positioning and robotics solutions, along with associated software businesses. The company said the sale allows it to channel investment into areas with greater synergies across its core portfolio.
The proceeds may also support Hexagon’s planned separation of Octave, which remains on track for completion during the first half of 2026 if approved.
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