Schneider Electric has agreed to merge with British software company AVEVA in a deal worth nearly $4 billion. The two companies tried to merge two previous times, and plan to have the deal completed before the end of 2017. Schneider will own 60% of the combined company.
The merger will create the “Enlarged AVEVA Group,” with a goal of creating a global leader in engineering and industrial software. Schneider and AVEVA directors say the combined company will create an extensive technology portfolio and maintain its relevance in key markets. The combined directors also believe the merger will offer solutions covering all aspects of digital asset management, and is positioned to take advantage of future merger and acquisition opportunities.
The “Enlarged AVEVA Group” is preparing to bring customers from both companies together, while sharing revenue and cutting expenses.
“We believe that through increased scale and complementary footprints, the transaction will generate synergies that will benefit customers and shareholders alike,” Jean-Pascal Tricoire, Schneider Electric Chairman and CEO, announced.
“We are pleased to reach an agreement on the combination of AVEVA and the Schneider Electric Industrial Software Business, thereby creating a global leader in engineering and industrial software,” Tricoire added. “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.”
“We are delighted to have reached agreement on the Combination with the Schneider Electric Software Business,” Phillip Aiken, Chairman of AVEVA commented. “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. AVEVA will significantly expand its scale and product portfolio, increase its capabilities in the owner operator market, diversify its end user markets and increase its geographic exposure to the North American market, in line with our strategic goals.
The transaction is expected to provide significant value to our shareholders via the upfront cash payment and a significant ongoing holding in the Enlarged AVEVA Group, which will benefit from synergies and a compelling equity story underpinned by an enhanced strategic positioning.”
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