Cadence Acquires BETA CAE

Cadence, a leading technology company, has announced its plans to acquire BETA CAE, a specialist in system analysis simulation. This strategic move is aimed at accelerating Cadence’s Intelligent System Design strategy by expanding its multiphysics system analysis portfolio and venturing into the structural analysis segment.

The acquisition deal involves Cadence paying approximately $1.24 billion, with 60% of the amount in cash, some of which will be borrowed, and the remaining portion from an issue of Cadence common stock. This significant investment underscores Cadence's commitment to enhancing its capabilities in system analysis and simulation.

The increasing complexity of systems and the growing pressure to reduce time-to-market, driven by the convergence of mechanical and electrical technologies and digital transformation across industries, have created a demand for early-stage multiphysics simulations in the design process.

Over the years, Cadence has been expanding its system analysis portfolio to create a comprehensive multiphysics platform that includes electromagnetics (EM), electrothermal (ET), and computational fluid dynamics (CFD) solutions. With the addition of BETA CAE, Cadence will now enter the structural analysis domain, which is considered the largest segment in system analysis.

BETA CAE is renowned for its portfolio of products, which encompass pre- and post-processing tools, mechanical and structural simulation, multiphysics analysis, and simulation process and data management solutions. The company serves top clients in various industries, including automotive, aerospace, industrial, and healthcare sectors, with customers such as Honda, GM, Lockheed Martin, and more.

One of BETA CAE's flagship products is ANSA, an advanced computer-aided engineering (CAE) pre-processor that offers comprehensive functionality for building full models in a cohesive environment. Another key product, META, is a post-processor that enables optimal visualization of simulation results and data, equipped with cutting-edge augmented reality features.

In addition to its pre- and post-processing tools, BETA CAE provides solvers like EPILYSIS and FATIQ, which help customers efficiently solve structural analysis and optimization challenges. The company's SPDRM tool focuses on orchestrating data, processes, and resources to streamline CAE operations.

With its acquisition of BETA CAE, Cadence aims to strengthen its multiphysics system analysis portfolio, which includes products like Clarity, Celsius, Sigrity, and Voltus. This move aligns with Cadence's commitment to offering comprehensive solutions in electromagnetics, thermal analysis, signal integrity, power integrity, and computational fluid dynamics.

Headquartered in Lucerne, Switzerland, BETA CAE operates a primary R&D center in Thessaloniki, Greece, and has a global presence with 13 additional offices worldwide. The company generates an annual revenue of around $90 million, and Cadence anticipates that BETA CAE will contribute approximately $40 million to its revenue by 2024.