Schneider Electric To Buyout UK Software Developer Aveva At 40% Premium

French industrial conglomerate Schneider Electric SE SBGSF has agreed to purchase the rest of Aveva Group Plc AVEVF in a deal that values the U.K. software developer's equity at £9.5 billion.
The purchase price implies a premium of 40% from before Schneider confirmed exploring a potential buyout in late August. Shares in Aveva closed up at £30.38 on September 20.
Schneider would snap the remaining 40% of Aveva it did not own for £31 a share, the FT reports.
Schneider has owned 60% of Aveva since a 2017 agreement and a £3 billion reverse takeover.
Aveva's software has focused primarily on the energy, infrastructure, and manufacturing sectors that Schneider covers.
Schneider said the deal would allow a "faster execution of Schneider Electric's software growth strategy."
The report added that Aveva would retain its Cambridge headquarters and an autonomous team.
Schneider provides automation and software services, including systems to help companies improve energy efficiency in buildings and factories.
Schneider also wants to help Aveva move to a subscription-based model and co-operate in areas like research and development.
In April, Aveva issued a profit warning flagging inflationary pressures and warning against slower growth.
Schneider held €3.03 billion in cash and equivalents as of June 30.
Price Action: SBGSF shares closed at $115.19 on Tuesday.
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