Schneider Electric Software to buy Aveva

Cash and paper transaction sees ex-Invensys unit combine with Aveva.

Having shelled out some $5.2 billion to acquire Invensys last year, France’s Schneider Electric is now to acquire UK-based Aveva in a cash and paper deal. Schneider is to contribute a selection of its industrial software assets to Aveva along with a £550 million cash payment. In return, Schneider will receive new Aveva shares, giving it a 53.5% stake in the new Aveva Group. Aveva shares popped 30% on the announcement but failed to register on Schneider’s €32bn market capitalization.

The partners plan to ‘create a global leader in industrial software,’ with asset management solutions that span design and build through to operations. Synergies are expected from cost cutting and leveraging ‘complementary’ market exposures, customer bases and product portfolios.

In a recorded webcast meeting with analysts Aveva management added little to the official release before allowing lots of time for questions. Some were answered, others not! The analysts seemed puzzled. Our theory is that the deal was driven by a desire to lose the steampunk ‘electric software’ name that Schneider gave its Invensys purchase. More from Aveva.

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