Schneider Electric To Buyout UK Software Developer Aveva At 40% Premium - Schneider Electric (OTC:SBGSF), AVEVA Group (OTC:AVEVF)

  • 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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