Cadence to Buy BETA CAE

Cadence Design Systems, Inc. has entered into a definitive agreement to acquire BETA CAE Systems International AG, a system analysis platform provider of multidomain, engineering simulation solutions. By adding BETA CAE’s technologies and talent Cadence expects to expand its multiphysics system analysis portfolio and enter the structural analysis segment.

Under the terms of the definitive agreement, Cadence will pay approximately $1.24 billion for the transaction, with 60% of the consideration to be paid in cash and 40% to be paid through the issuance of Cadence common stock to current BETA CAE shareholders. In conjunction with the transaction, Cadence expects to obtain new debt financing to fund a portion of the cash component of the purchase price. Cadence plans to use free cash flow generated by its existing operations to rapidly pay down debt incurred to fund the transaction, while also maintaining share repurchases.

Over the past few years, Cadence has 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 will enter structural analysis, the largest system analysis segment.

BETA CAE’s portfolio includes its flagship pre- and post-processing products—mechanical and structural simulation and multiphysics analysis, and simulation, process, data, and resources management (SPDRM) solutions. BETA CAE has a footprint in the automotive vertical sector, delivering solutions to the top global automobile manufacturers and most Formula One racing teams, as well as leading customers in the aerospace, industrial and healthcare industries. BETA CAE customers include marquee names such as Honda Motor Company Ltd., General Motors Company, Stellantis, Renault Group, Volvo Cars and Lockheed Martin Corporation, among others.

Cadence notes that it entered the multiphysics space in recent years through innovation and acquisitions. “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,” says Dr. Anirudh Devgan, president and CEO, Cadence. “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.”

“For more than two decades we’ve led the evolution of engineering simulation, first by establishing our reputation in the land mobility sector, and then successfully expanding to broad deployments across aerospace, defense, biomechanics, electronics, energy and other industries,” says Panagiotis Kouvrakis, chairman of BETA CAE. “We are very excited to join the Cadence team and are looking forward to advancing success through our shared values and passion for innovation and engineering, and our unwavering commitment to customers and partners.”

BETA CAE provides a complete platform that accommodates the simulation and analysis flow for multiphysics system simulations, spanning mechanical/structural, CFD and EM. Its flagship products include ANSA, an advanced, multidisciplinary computer-aided engineering (CAE) pre-processor that encompasses all necessary functionality for full-model build up in a single, cohesive, integrated environment, and META, an advanced, multidisciplinary CAE post-processor for optimally visualizing data and simulation results and creating reports, powered with augmented reality capabilities.

Additionally, BETA CAE’s EPILYSIS and FATIQ solvers enable customers to solve structural analysis and optimization problems. The SPDRM tool addresses the integrated orchestration of data, processes and resources by providing a simple way to capture, deploy, manage and improve CAE processes. BETA CAE’s products complement Cadence’s multiphysics system analysis portfolio, which includes Clarity, Celsius, Sigrity, Voltus, Fidelity and the Millennium M1 multiphysics platform.

Headquartered in Lucerne, Switzerland, BETA CAE has a primary R&D center in Thessaloniki, Greece and 13 additional offices worldwide.

The acquisition is expected to close in the second quarter of 2024, subject to receipt of regulatory approvals and other customary closing conditions. BETA CAE has annual revenue of about $90 million, and Cadence expects BETA CAE to contribute approximately $40 million to 2024 revenue. 

Sources: Press materials received from the company and additional information gleaned from the company’s website.

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