Schneider to spend €1.4bn on Telvent
FRENCH power network equipment specialist Schneider Electric is to buy energy software provider Telvent for €1.36bn (£1.2bn) as part of its push into energy efficient grids and emerging markets.
The takeover bid is backed by US-listed Telvent’s main shareholder and would give Schneider Electric a stronger presence in software to complement its equipment sales. Telvent’s software helps manage electricity grids and transportation systems serving industries like oil and gas with a strong position in North and South America. Schneider Electric said yesterday the cash offer values Telvent – which is 40 per cent owned by Spanish conglomerate Abengoa – at €27.78 per share, or a 36 per cent premium to Telvent’s average share price in the past three months.
The deal has an enterprise value of €1.4bn including the purchase of Telvent convertible notes, fits with Schneider’s strategy of making small-to-medium acquisitions to bolster its existing businesses and expand into emerging markets, such as India and Russia.
On Tuesday, Schneider announced the acquisition of 74 per cent of Indian energy storage group Luminous for €215m.
“In the past two days we’ve announced two acquisitions that are really just the strict execution of the strategy that we explained in November – a very strong push in the direction of new economies,” Schneider chief executive Jean-Pascal Tricoire said.
“The deal fits in the ‘medium’ category and as such there may be some relief that it affirms the previous management comments,” said Citigroup analysts Mark Fielding and Alexandre Werbowy.