French firm in £1.3bn ‘reverse take-over’ of Cambridge’s Aveva

AVEVA Group Plc. (AVV.L), a provider of engineering data and design IT systems and Schneider Electric SE announced that they have reached a non-binding agreement under which AVEVA will acquire selected Schneider Electric industrial software assets in a debt-free cash basis.


The new company will “address customers’ requirements along the full asset life cycle in key industrial and infrastructure markets”, said Schneider Electric CEO Jean-Pascal Tricoire. The benchmark gauge advanced 1.5 percent last week after Greece agreed to the terms necessary to negotiate a bailout.

Aveva is linking up with a French firm to create an industrial software powerhouse.

Investec, who upgraded Aveva to “Buy”, calculated the payment, plus a 15 percent profit boost from cost savings, resulted in a value of about 2,600 pence a share.

SCHNEIDER ELECTRIC Schneider Electric is expanding its software portfolio.

“(It) will diversify Aveva’s end markets, significantly enhancing its position in oil and gas, power and marine, but also adding a big presence in other verticals including chemicals, food and beverage, mining water and pharmaceuticals”.

Aveva shares rose as much as 19 percent in London trading while Schneider gained as much as 0.9 percent in Paris.

The deal is expected to create a company with combined revenues of around £534 million and underlying earnings of £130 million.

The cash paid by Schneider will be paid to Aveva after the deal, which will see the former assets of Britain’s Invensys, bought by Schneider two years ago, united with Aveva.

The complex deal will be classified as a reverse take-over.


Lazard advised Aveva, while Morgan Stanley and Ondra Partners advised Schneider.

The deal will see Schneider Electric sell its software operations to Aveva but then take control of the British firm