Schneider Electric seeks $2bn takeover of Spain's Telvent
French electrical engineering giant Schneider Electric on Wednesday sought to strengthen its smart grid offerings by announcing a $2-billion (1.4-billion-euro) offer to acquire Spanish software company Telvent.
The offer at $40 per share for 100 percent of Telvent represents a premium of 36 percent to the company's average share price over the last three months, said Schneider Electric.
It said Telvent's main shareholder, Abengoa SA, has agreed to tender its 40 percent stake in Telvent, and that Telvent's management had also approved the offer.
"By acquiring Telvent, Schneider Electric will integrate a high value-added software platform that presents a good fit with its own range in field device control and operation management software for the smart grid and efficient infrastructures," the French company said in a statement.
Smart grids are electricity networks that can track the behaviour of its users in order to deliver and monitor supplies more efficiently.
The acquisition, which should be completed by the third quarter of this year, should revenue and cost synergies of 50-60 billion euros by 2016, of which two thirds should be achieved by 2014, said the company.
Telvent, which employs more than 6,000 people in more than 19 countries, reported 2010 sales of approximately 753 million euros and adjusted EBITA profits of 115 million.
Schneider Electric posted sales of 19.6 billion euros last year and employs more than 110,000 people in over 100 countries.
© 2011 AFP