Cadence moves into structural analysis with $1.2bn European buy
Cadence Design Systems is to acquire European tool developer Beta CAE Systems in a strategic $1.2bn move into structural analysis.
The deal with Beta CAE in Lucerne, Switzerland, adds more multiphysics system analysis tools to Cadence and provides entry into the automotive structural analysis market. The company also has its primary R&D centre in Thessaloniki, Greece.
The mechanical and structural simulation and multiphysics analysis, and simulation, process, data, and resources management (SPDRM) tools are heavily used in automotive with the top 10 global automobile manufacturers and most Formula One racing teams as customers, as well as leading customers in the aerospace, industrial and healthcare industries. Customers include Honda, GM, Stellantis, Renault, Volvo Cars and Lockheed Martin.
Cadence will pay approximately $1.24 billion for the transaction, with 60% in cash and 40% in shares. Beta CAE has annual revenue of about $90 million, and Cadence expects the company to contribute approximately $40 million to 2024 revenue.
This follows the announcement of the $35bn acquisition of simulation firm Ansys by Synopsys in January.
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Cadence has expanded its system analysis portfolio in recent years with multiphysics analysis for electromagnetics (EM), electrothermal (ET) and computational fluid dynamics (CFD) and the Beta CAE adds structural analysis, the largest system analysis segment.
“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 Dr. Anirudh Devgan, president and CEO, Cadence.
“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.”
“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, defence, biomechanics, electronics, energy and other industries,” said Panagiotis Kouvrakis, chairman of Beta CAE.
ANSA is a multidisciplinary computer-aided engineering (CAE) pre-processor that encompasses all necessary functionality for full-model build up in a single, cohesive, integrated environment, while META is a post-processor for optimally visualizing data and simulation results and creating reports, powered with augmented reality capabilities. The EPILYSIS and FATIQ solvers enable customers to efficiently solve structural analysis and optimization problems while the SPDRM tool addresses the integrated orchestration of data, processes and resources by providing a simple and intuitive way to capture, deploy, manage and improve CAE processes.
The acquisition is expected to close in the second quarter of 2024.
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