Schneider Electric in Talks to Take Control of Aveva Group
05 Settembre 2017 - 12:18AM
Dow Jones News
By Ben Dummett and Nick Kostov
France's Schneider Electric SE is in advanced talks to take
control of British engineering software provider Aveva Group PLC,
according to people familiar with the matter, after previous talks
to merge their software operations collapsed over terms.
The current deal calls for Schneider, a global industrial giant,
to fold its software assets into Aveva's operations and pay the
U.K. company more than GBP500 million ($646.4 million) in exchange
for a controlling stake in the combined entity, in a so-called
reverse takeover, according to the people familiar with the
matter.
Aveva, with a current market value of about GBP1.2 billion,
would maintain its stock listing on the London Stock Exchange and
remain headquartered in Cambridge, the people said. A deal could be
announced as soon as Tuesday.
Sky News first reported the planned tie-up.
The combination would create a larger industrial software
provider, offering opportunity to cut costs, and access new
customers by providing a broader range of products. Schneider has
already targeted U.K. software companies in the past to bolster its
industrial software business. In 2013, it agreed to acquire
Invensys PLC for GBP3.31 billion to better compete against rivals
such as Siemens AG, Mitsubishi Electric Corp. and Rockwell
Automation Inc.
Spun out of Cambridge University in 1967, Aveva provides
engineering software to owners, operators and engineering
contractors that operate in the power, oil and gas, marine and
paper and pulp sectors among others. It employs more than 1,700
people across 30 countries.
The deal comes at a time when the company is trying to reduce it
reliance on the slowing oil and gas and marine markets. For the
year ended March 31, Aveva grew revenue by 7% to GBP215.8 million
from the prior year, benefiting in part from currency moves.
Discounting that, revenue was down 3.8%.
Schneider's software is used to help manage manufacturing
processes, design tools and train plant crews. It services an array
of industries ranging from transportation to food and
beverages.
The planned transaction is similar to the structure of the
companies' previous attempt to merge their industrial software
businesses back in July 2015. Then Schneider had agreed to combine
its software assets with those of Aveva and pay GBP550 million in
exchange for a 53.5% stake in the enlarged group. However, the deal
collapsed after the two sides couldn't agree on final terms.
Write to Ben Dummett at ben.dummett@wsj.com and Nick Kostov at
Nick.Kostov@wsj.com
(END) Dow Jones Newswires
September 04, 2017 18:03 ET (22:03 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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