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

Extensive Range of Catering Equipment, Furnishings & Wet Stock (Fast Sale)
UK Wide

Viewing: Wednesday 27 February 2019 between 10am and 3pm. Closing From 10am Friday 1 March 2019.

Asking Price: Offers Invited
Turnover: £500k - £1m

Tyre Services
Fakenham, Norfolk, UK Wide

Tyre specialist offering commercial and agricultural tyres. Major Tyres Ltd with Hankook performance tyres. Offers invited.

Asking Price: £299,950
Turnover: £380,000

LEASEHOLD


Tyre Garage
Midhurst, West Sussex, UK Wide

Busy vehicle tyre changing business, which is in a prime trading location in Midhurst, West Sussex. The business was established by our clients in 1984. Only now is the business being offered to the market, due to our clients’ desire for a well-deser...

Asking Price: £399,995
Turnover: £336,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
21
 
Feb
 

Lakeside hotel enters administration | ADMINISTRATION

A historic but well-preserved hotel located on the banks of ...

 
19
 
Feb
 

Pharmaceutical manufacturer enters administration | ADMINISTRATION

A pharmaceutical manufacturing company based in Bristol has ...

 
16
 
Feb
 

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