Latham & Watkins has been called in to guide US chip design software provider Cadence on its €2.7bn acquisition of the design and engineering business of Sweden’s Hexagon, which is being advised on the matter by Jones Day.
The deal forms part of Cadence’s bid to expand its design and analysis portfolio and includes Hexagon’s MSC Software business, a market leader in engineering simulation and analysis solutions.
The Latham team guiding Cadence, which ranks major chipmakers like Qualcomm and Nvidia among its customers, was led by Bay Area corporate partners Mark Bekheit and Tessa Bernhardt. Last year, Berkheit also led the Latham team that guided Cadence’s $1.24bn acquisition of BETA CAE, a maker of software for analysing car and jet engine designs.
Meanwhile, the Jones Day team acting for Hexagon was led by corporate partner Thomas De Muynck in Brussels alongside Cleveland-based M&A partner trio Benjamin Stulberg, Brian Grady and Joseph Juszak.
The deal will give Cadence a broader customer base, including suppliers such as Volkswagen Group, BMW and Lockheed Martin that use Hexagon’s solutions for simulation workflows. Cadence said these solutions were “essential for optimising structural integrity, vehicle dynamics and system reliability, especially as industries transition toward electric vehicles, autonomous systems and advanced materials”.
The business being acquired brought in revenue of €265m in 2024 and has more than 1,100 employees globally. Cadence will pay 70% of the amount in cash and the remainder by issuing shares to Hexagon.
The transaction is expected to close in the first quarter of 2026. Reuters reported Cadence will have to pay a reverse termination fee of up to €175m if the deal does not go through.
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