Aveva and Schneider Electric to merge in £3bn move

Wed, 06 Sep 2017 | MERGER

A UK engineering software firm is set to merge with the software arm of French energy group Schneider Electric, creating an entity expected to be worth around £3 billion.

Schneider will take a majority stake in Aveva, which was born from a government-funded research institute founded in Cambridge in the 1960s, to create a new company in a deal that has been in the offing for several years after similar deals were proposed in 2015 and 2016.

Aveva, known as Britain’s oldest technology company, currently employs 1,700 people and enjoys an annual revenue of £201.5 million.

Under the terms of the transaction, Schneider will take a 60 per cent stake in the new group to create a “global leader in engineering and industrial software”.

James Kidd, the current CEO of Aveva, will remain in his role until a replacement is found, and which time he will take over as deputy CEO and CFO.

The new company will cover a range of sectors, combining Aveva’s specialised data in the oil, gas and power sectors with Schneider’s expertise in the chemicals, food and beverage industries. The French firm will also bring its knowledge of North American markets to bear.

This reverse takeover structure will allow the new firm to retain Aveva’s headquarters in Cambridge and its listing on the London Stock Exchange.

Philip Aiken, Aveva’s chairman, said he was “delighted” to have reached an agreement with Schneider.

He added: “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.”

It is also reported that a clause has been negotiated into the deal to allow Aveva’s board to entertain proposals from third parties for a takeover, should any be forthcoming. Emerson, GE and Honeywell are just a few firms who could gatecrash the deal.

The £3 billion bid planned with Schneider, however, would represent Britain’s biggest technology deal this year.

Subscribe to Business Sale Report

Technology businesses for sale


Share this article



Latest Businesses for Sale

Bakery
North East, UK

Specialises in the provision of a range of premium pastries, hot and cold snacks, speciality cakes and freshly baked breads for major supermarkets and local businesses across the North East. Highly skilled and experienced workforce whose professional...

Asking Price: Offers Invited
Turnover: £1,900,000

LEASEHOLD


Off-Licence & Convenience
Ibstock, Leicestershire, UK Wide

The business has been operated by the current vendors for over 25 years and this is the first time the site has been advertised on the open market for over 100 years. The business has built up an enviable reputation throughout the area for quality an...

Asking Price: £450,000
Turnover: £751,000

FREEHOLD


MOT Test Centre/Vehicle Repair Business
Staffordshire, UK Wide

Well-established and very popular MOT station and vehicle repair business Staffordshire. The business was established by our client in 2005 and is only now being offered to the market due to our clients’ desire for change of direction and to concentr...

Asking Price: £450,000
Turnover: £319,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
15
 
Aug
 

Payroll and HR companies acquired by software group | BUSINESS SALE

IRIS Software Group has finalised the agreement of intent to...

 
14
 
Aug
 

NG Bailey’s acquisition of Freedom boosts its turnover by 16 per cent | BUSINESS SALE

Engineering and services group NG Bailey’s strategic a...

 
13
 
Aug
 

Forensic science equipment supplier completes MBO | MBO/MBI

A private equity firm has backed the management buyout of a ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources