Cadence to Acquire BETA CAE Systems for $1.24B

On March 5th, Cadence Design Systems officially announced its acquisition of BETA CAE Systems for a total consideration of $1.24 billion, encompassing both cash and stock, with a significant $744 million in cash. BETA CAE Systems is a distinguished software provider specializing in the analysis of automotive and jet designs.

As a prominent player in computer chip design software, Cadence has historically supported chip manufacturers in the intricate design of integrated circuits. However, over the last six years, the company has strategically pivoted towards the development of design software for large-scale physical systems such as aircraft. Notably, Cadence recently introduced a cutting-edge supercomputer designed to simulate airflow around jet engines and address various applications.

This strategic acquisition is in line with Cadence's evolving focus, as BETA CAE's software is widely utilized for the analysis of designs within the automotive and aerospace sectors. Major clients include Honda, General Motors, and Lockheed Martin.

Preceding Cadence's announcement, Synopsys had revealed plans to acquire Ansys, another leading player in physical analysis software, for a substantial $35 billion.

Senior Analyst Joe Vruwink from Baird Equity Research remarked, "Cadence's move also hints at a potential future portfolio that could rival the Synopsys-Ansys combination."

Cadence anticipates finalizing the BETA CAE Systems transaction in the second quarter of this year, with an expected contribution of approximately $40 million to its revenue in 2024. Publicly available information indicates that BETA CAE Systems, headquartered in Switzerland, is globally recognized for providing top-tier engineering simulation solutions. Their software suite, featuring ANSA and META software, has maintained a leadership position for over two decades, particularly in the automotive industry. Notably, in 2022, BETA CAE Systems expanded its business presence in China with the inauguration of a new office in Shanghai.