Cadence Design Systems, Inc. (CDNS) recently declared its intention to acquire BETA CAE Systems International AG, a leading firm in the field of multi-domain, engineering simulation solutions. This strategic move aims to bolster Cadence's Intelligent System Design approach by adding to its system analysis capabilities and initiating its presence in the structural analysis industry.
The acquisition, with an estimated value of around $1.24 billion, is planned to be executed with 60% cash payment and the issuance of 40% of Cadence common stock to the existing shareholders of BETA CAE. To fund the cash portion of the deal, Cadence is planning to obtain new debt financing. The acquisition is expected to be finalized in the second quarter of 2024.
