Cadence Design Systems said it entered into an Agreement and Plan of Merger to acquire Hexagon Smart Solutions AB and Hexagon's design and engineering business on September 4, 2025, with total consideration of approximately €2.70 billion, of which approximately €1.89 billion will be paid in cash and the remainder in newly issued shares.

1. 01

   Cadence Design Systems said it entered into an Agreement and Plan of Merger to acquire Hexagon Smart Solutions AB and Hexagon's design and engineering business on September 4, 2025, with total consideration of approximately €2.70 billion, of which approximately €1.89 billion will be paid in cash and the remainder in newly issued shares.

2. 02

   The company said it expects the Hexagon acquisition to close in Q1 2026. It added that if the agreement is terminated due to failure to obtain regulatory approvals or other reasons, it would be required to pay a reverse termination fee of up to €175 million, and that it plans to fund the cash consideration from its existing cash and borrowings under its existing debt facilities.

3. 03

   Cadence Design Systems said that as of September 30, 2025, its cash and cash equivalents were $2,753.2 million (as of December 31, 2024: $2,644.0 million). It explained that cash flow from operations for the 9 months increased due to growth in its business, though the increase was partially offset by payments related to its settlements with BIS and the DOJ.

4. 04

   The company said that in May 2025, its board of directors approved an additional $1.5 billion increase in its share repurchase authorization, and that as of September 30, 2025, $1.6 billion remained available under its repurchase authorization.

Key figures

Quarter ended September 30, 2025

Revenue

$1.3B

Operating income

$425M

Net income

$287M

EPS

$1.05

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.