(Reuters) -Cadence Design Systems ( CDNS ) will buy analysis platform provider BETA CAE Systems International AG for $1.24 billion in cash and stock, the software firm said on Tuesday.

The company will pay 60% of the consideration in cash and 40% through the issuance of Cadence common stock to current BETA CAE shareholders.

Cadence expects to obtain debt to finance a part of the $744 million cash component of the deal, and plans on using free cash flow generated by current operations to pay off the debt.

San Jose, California-based Cadence's shares were down 1.5% premarket, showing little reaction to the news.

The deal is expected to close in the second quarter of the year and Cadence expects BETA CAE to contribute about $40 million to its 2024 revenue, the company said in a statement.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Devika Syamnath)