California-based Cadence Design Systems (CDNS.O) will acquire BETA CAE Systems International AG for $ 1.24 billion. The acquisition is expected to close in the second quarter of 2024.
Cadence will buy BETA CAE Systems paying 60% in cash and 40% in Cadence common stock. To cover part of the cash payment, Cadence expects to secure new debt financing. Cadence intends to use the money it makes from current operations to cover the debt and continue buying back shares.
Cadence is a leading EDA and Intelligent System Design provider delivering hardware, software and IP for electronic design. The strategic acquisition of BETA CAE Systems confirms Cadence’s commitment to expand into structural analysis segment and into automotive sector, especially electric vehicles. BETA CAE’s products are very complementary to Cadence’s multi-physics system analysis portfolio.
BETA CAE is headquartered in Switzerland with a primary R&D center in Thessaloniki, Greece and 13 offices worldwide. BETA CAE has annual revenue of $ 90 million. Cadence expects BETA CAE to bring in $ 40 million to 2024 revenue.
Sources:
Cadence to buy BETA CAE Systems for $ 1.24 billion 05 March 2024
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