Schneider Electric acquired the British software developer Aveva for 3 billion GBP

Schneider ElectricThe French industrial group Schneider Electric acquired the British software developer Aveva for 3 billion GBP. The French company will hold 60% of the merged group, estimated at close to 1.7 billion pounds according to the terms of the deal. The agreement provides software division of Schneider Electric to merge Aveva in exchange for new shares.

Schneider will also pay 550 million GBP of cash or around 8.58 GBP per share to Aviva’s shareholders to compensate for the loss of control, as they will only account for 40% of the new company. The British group will further allocate 100 million GBP or 1.56 GBP per share among its shareholders.

The joint venture will be listed on the London Stock Exchange.

“The deal will create a world leader in industrial software that will better compete on the world stage”, said Aveva chairman, Philip Aiken.

Aveva develops software for the oil and gas sector, the mining, and paper and pulp industries. But its business has been put under pressure as customers have cut their costs because of low commodity prices. Schneider’s software division includes assets that were previously part of Invensys, a British engineering group, acquired by the French company in 2013 for 3.4 billion GBP.