Acquisition of selected Schneider Electric industrial softwareStaff writer ▼ | July 21, 2015
Aveva Group plc and Schneider Electric SE reached a non-binding agreement on the key terms and conditions of an acquisition of selected Schneider Electric industrial software assets by Aveva.
Acquisition A reverse takeover of Aveva
Aveva will acquire Schneider Software on a debt-free cash-free basis and receive from Schneider Electric upon completion £550 million for consideration of new Aveva shares to be issued to Schneider Electric, such that Schneider Electric will own 53.5% of the Enlarged Aveva Group’s fully diluted share capital immediately post completion.
Based on the current Aveva share price, the c. 74 million Aveva shares to be issued to Schneider Electric as part of the transaction have a current market value of c. £1.3 billion.
The cash payment from Schneider Electric will be distributed upon completion together with Aveva’s net excess cash to Aveva’s shareholders excluding Schneider Electric.
Given the relative size of Schneider Software and Aveva, the transaction will be classified as a reverse takeover of Aveva. ■