Power equipment maker Schneider wants to buy out software developer Aveva

French engineering company Schneider Electric is considering buying out British software developer Aveva. About this Schneider stated today, August 24, after the appearance of rumors in the media. Schneider already owns a 60 percent stake in Aveva. Schneider noted that so far the company has not contacted Aveva management about the deal and has not even made a final decision on the need for such a deal or its terms. The statement said a decision would be made by September 21.

Aveva confirmed that no offer has yet been received. If it is received, it will be considered by the board of directors. Aveva shares rose 32% after Schneider’s announcement, bringing the company’s capitalization to £8.6bn ($10.1bn). Schneider specializes in various equipment for the energy industry, while Aveva develops software for the energy, mining, shipbuilding and other industries. In 2017 Schneider after two failed attempts agreed about buying a 60% stake in Aveva and paid $3.3 billion for them. At the current price of Aveva shares, the French company will have to pay more than $4 billion for a 40% stake.

According to Morningstar analyst Denise Molina, five years ago, Schneider wanted to keep Aveva partially independent and preserve its corporate culture. Now, according to Ms. Molina, Aveva is much more integrated with Schneider’s software division – from there a new CEO of Aveva came in, so that a complete takeover of the company no longer carries the risks of disrupting its work. In addition, Schneider has already stated that in the event of a merger, they will retain Aveva’s independent business model.

Yana Rozhdestvenskaya