Third time’s the charm?
Aveva has agreed to a takeover offer from French industrial group Schneider Electric, the third time the two groups have attempted to merge in the last two years.
Schneider will take a 60 per cent stake in an enlarged London-listed Aveva incorporating Schneider’s software division, with existing Aveva shareholders receiving £650m in cash, equivalent to around 1,014p per Aveva share.
Aveva said “the Schneider Electric software business’ portfolio complements AVEVA’s existing product range with little overlap, which will allow the enlarged Aveva group to offer a comprehensive combined product portfolio”, including greater exposure to the US market.
The two businesses’ combined revenues for the last financial year would have been around £658m, with adjusted earnings before interest, tax and amortisation of £146m.
James Kidd, Aveva’s current chief executive, is expected to carry on in his role until the board can appoint a new chief executive, after which point he will become deputy CEO and chief financial officer.
Philip Aiken, Aveva chairman, said:
We are delighted to have reached agreement on the combination with the Schneider Electric software business. The transaction will be transformational to Aveva, creating a global leader in industrial software, which will be able to better compete on a global scale.
Jean-Pascal Tricoire, Schneider Electric chairman and CEO, said:
The combination will address customers’ requirements along the full asset life cycle in key industrial and infrastructure market through a unique portfolio of asset management solutions from design & build to operations. It will also create the right environment and structure for the software teams to aggressively develop their business, while benefiting from Schneider Electric’s multiple go-to-market channels and segment expertise around the world, as well as the EcoStruxure platform and its ecosystem of partners.