10:04 AM EST, 03/05/2024 (MT Newswires) -- Cadence Design Systems ( CDNS ) said Tuesday it has agreed to buy for $1.24 billion BETA CAE Systems International, a provider of engineering simulation services.

Under the terms of the deal, 60% of the amount will be paid in cash and 40% will be paid via the issuance of Cadence common shares to BETA CAE shareholders, Cadence said.

Also, Cadence expects to get a debt financing to fund part of the cash portion, it said, adding that it plans to use its free cash flow to quickly pay down the debt, while also keeping its share buybacks.

The deal will allow Cadence to expand its multiphysics system analysis portfolio and to enter the structural analysis segment, the company said.

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