Shares in AVEVA Group PLC (LON:AVV) rose on Tuesday after a report emerged that France’s Schneider Electric edges closer to a deal to totally acquire the UK software firm.
As per media reports, the boards of both companies are in conversation associated with an agreement that would see Schneider purchasing roughly 40 per cent of Aveva shares. The transaction is likely to cost the industrial firm £30 per share, translating to an overall price tag of about £3.5B. The Software firm’s market capitalization remains more than £8.8B, based on its shares’ value of £29.59 at the close of trading on Monday.
It is suggested that the deal aims to simplify Aveva’s corporate structure while creating cost synergies at the same time. Schneider would potentially be purchasing the remaining Aveva shares at a valuation as much as 20 per cent lower than their level a year ago.
Apparently, Cambridge-based Aveva is also exploring new possibilities and investments for the brand under Schneider’s control. Schneider, which owns almost 60 per cent of Aveva, assumed majority control over Aveva following a reverse takeover in 2017. Reportedly, the company, in August, said it was eyeing a possible buyout of Aveva’s minority shareholders.
The deal aims to simplify Aveva’s corporate structure while also creating cost synergies. They added that Schneider would potentially be purchasing the remaining Aveva shares at a valuation as much as 20% lower than their level a year ago.