Schneider Electric Sells DTN Data Software Unit in $900M Deal

Schneider Electric Sells DTN Data Software Unit in $900M Deal

According to a recent Market Watch press release, Schneider Electric SE agreed to sell its U.S.-based data-software business DTN to TBG AG, a Switzerland-based private holding company, in a deal valued at $900 million.

Schneider acquired DTN as part of its EUR1.4 billion ($1.5 billion) acquisition in 2011 of Spain’s Telvent. But in October, Schneider announced a strategic review of the business and decided against trying to build a subscription-based business as a new source of revenue.

The deal allows Schneider, which is based near Paris, to recover the bulk of what it paid to acquire Telvent while retaining a large part of its operations. Schneider said it plans to use net proceeds from the transaction to buy back about EUR1 billion of its shares over two years.

The expected sale also comes as the French multinational’s overall strategy is showing signs of paying off. In February, it reported 24% growth in annual net profit, attributing the strength to a combination of organic growth, cost controls and improving margins.


Tagged with ,

Comment on the story

Your email address will not be published.