- French industrial conglomerate Schneider Electric SE SBGSF has agreed to purchase the rest of Aveva Group Plc AVEVF in a deal that values the U.K. software developer’s equity at £9.5 billion.
- The purchase price implies a premium of 40% from before Schneider confirmed exploring a potential buyout in late August. Shares in Aveva closed up at £30.38 on September 20.
- Schneider would snap the remaining 40% of Aveva it did not own for £31 a share, the FT reports.
- Schneider has owned 60% of Aveva since a 2017 agreement and a £3 billion reverse takeover.
- Aveva’s software has focused primarily on the energy, infrastructure, and manufacturing sectors that Schneider covers.
- Schneider said the deal would allow a “faster execution of Schneider Electric’s software growth strategy.”
- The report added that Aveva would retain its Cambridge headquarters and an autonomous team.
- Schneider provides automation and software services, including systems to help companies improve energy efficiency in buildings and factories.
- Schneider also wants to help Aveva move to a subscription-based model and co-operate in areas like research and development.
- In April, Aveva issued a profit warning flagging inflationary pressures and warning against slower growth.
- Schneider held €3.03 billion in cash and equivalents as of June 30.
- Price Action: SBGSF shares closed at $115.19 on Tuesday.
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