British engineering software firm Aveva is set to form a new software entity with the French corporation, Schneider electric, a specialist in automation solutions.
This deal will see Schneider Electric, the smaller organisation, hold a majority 60 per cent stake in the new company, a business move known as a reverse takeover.
Following expectations of completion before the close of this year, the new, combined company that will emerge is set to be valued at around three billion pounds.
Despite the French company’s position as the dominant stakeholder, the company is set to be listed on the London Stock Exchange, with Aveva also remaining at its Cambridge headquarters.
The move is intended to increase the geographical business range for the new entity, while also unlocking a fuller spectrum of industries and markets to target with its software offerings.
Aveva is well-established in providing software to major industries including power and marine, and it is a constituent of the FTSE 250 Index.
When working as one, the new company intends to offer end-to-end solutions for industry, working with areas including pharmaceuticals, chemicals, mining, water and critical infrastructure.
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Schneider Electric will provide experience and specialisation in energy management, in addition to the automation solutions it provides. Energy management includes both the organisation and control of both energy production and consumption, while climate protection is also featured.
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While the deal’s conclusion is expected to be achieved before the end of 2017, conditions that must be addressed include regulation and anti-trust approvals, while also requiring Aveva shareholder agreement.
Philip Aiken, Chairman of AVEVA said: “We are delighted to have reached agreement on the Combination with the Schneider Electric Software Business. 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. AVEVA will significantly expand its scale and product portfolio, increase its capabilities in the owner operator market, diversify its end user markets.”
