Schneider Electric launches $2 billion bid for Spain's software firm Telvent
01 June 2011
French energy management company Schneider Electric, today launched a $2-billion cash tender offer for Spanish software devlpoper for smart electricity grids, Telvent GIT, SA.
The proposed acquisition comes a day after Schneider Electric announced plans to acquire a 74-per cent in Delhi-based Luminous Power Technologies, a maker of inverters and power storage systems, for €215 million (around Rs1,384 crore). (See: Schneider Electric to acquire 74-per cent stake in Luminous for €215 million)
Schneider will make a cash tender offer for all of Telvent's shares at $40 per share, representing a premium of 36 per cent to Telvent's average share price over the last three months.
Spanish construction-to-energy conglomerate Abengoa SA has agreed to tender its 40-per ent stake in Telvent, while the management of Abengoa SA and Telvent, who collectively hold approximately 1.5 per cent of Telvent, have also agreed to tender their shares to the offer.
Based in Madrid and listed on NASDAQ, Telvent is a software and IT solution provider of real-time management of smart infrastructures. It provides its customers with increased reliability and flexibility of power distribution networks as well as operational and energy efficiency of their infrastructures.
Telvent employs more than 6,000 people globally and operates in more than 19 countries. Its five operating segments are energy, which comprised of 34 per cent of its 2010 sales, transportation with 28 per cent, environment with 8 per cent, global services with 19 per cent and agriculture with 11 per cent.