FRANCE: In a deal valued at approximately 9.48 billion pounds ($10.8 billion), French industrial conglomerate Schneider Electric (SCHN.PA) announced that it would proceed with a full takeover of British software company Aveva Plc. The company would offer 31 pounds per share.
Before announcing its plans to consider a full buyout, Schneider said its offer represented a premium of about 41% to Aveva’s closing share price of 21.92 pounds on August 23.
In early London trading, Aveva’s shares increased 2.2% while Schneider Electric’s fell 1%.
Almost 60% of Aveva is already owned by Schneider. In a reverse acquisition in 2017 that allowed the British company to keep its London listing, it gained majority control. At that point, the French group paid 3 billion pounds.
It was stated that Aveva’s software would continue to be “totally agnostic,” meaning it would function with or without Schneider Electric hardware and that the company would continue to operate independently, with its employees remaining outside of Schneider’s teams.
According to the French corporation, this strategy would preserve Aveva’s “unique character as a software company.” In addition to electrical components, energy management, and industrial automation systems, Aveva’s products are employed in the design and administration of oil rigs, ships, and chemical facilities.
Concern was expressed by analysts at Jefferies and Credit Suisse over the plan to maintain the company’s objectivity and independence.
Jefferies stated that while it could understand the business case for cost savings and the acceleration of software as a service, “We think the valuation pricey and need answers (as to) why it’s not pursuing greater hardware integration.”
Schneider noted that any interim dividend of up to 13 pence would continue to be paid to Aveva shareholders without any adjustments.
About Aveva
AVEVA, one of the most inventive organisations in the world, helps customers with open solutions and the knowledge of more than 6,400 staff members, 5,000 partners, and 5,700 certified developers.
Leading the way in industrial software globally, AVEVA inspires innovation to promote wise resource management.
The provision of life’s necessities, including secure and dependable energy, food, medicines, infrastructure, and more, is a top priority for more than 20,000 businesses in more than 100 nations.
It offers software tools for utility companies, producers of oil and gas, and transportation companies.
With activities all over the world, they are listed on the FTSE 100 of the London Stock Exchange and have their headquarters in Cambridge, UK.
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