Schneider Electric plans to acquire Invensys

Schneider Electric

Schneider Electric

FRANCE: Schneider Electric is making a bid3.3 -billion-pound ($5 billion) to buy industrial control and technology vendor Invensys to offer smart grid solutions.

Invensys said it has received an offer from Schneider to be acquired for 505 pence per share — 319 pence per share in cash and 186 pence per share in new Schneider stock. That price represents a 15-percent premium over the publicly traded company’s share price, and Friday saw a commensurate bump in the company’s share price, up 16 percent, to 5.1 pounds ($7.70).

Schneider Electric is  in building power control equipment and systems, has plenty of reason to want to better control lots of HVAC systems for demand response and energy efficiency purposes.

Invensys, with 16,500 employees and operations in 180 countries, also makes controls technology for industries such as oil and gas, mining and manufacturing, as well as supervisory control and data acquisition (SCADA) systems in use on the grid. Invensys’ SCADA work includes a few utility grid applications, including deployments with Cooper Power Systems and rural utilities such as South Carolina’s Santee Electric Cooperative.

The core of its utility offering is its InFusion enterprise control system, which links up SCADA with supporting Microsoft from Microsoft and SAP — one of many smart-grid-as-enterprise platform offerings we’ve seen from the likes of General Electric, SAIC, Infosys, Oracle, and the above-named InFusion partners, to name a few.

These attributes could make Invensys attractive to all of the above-named smart grid giants, all of which have been spending billions in acquisitions over the past few years, for everything from software startups to giant equipment manufacturers. Schneider’s reported $5 billion offer for Invensys, while not as big as the $11.8 billion purchase of Cooper Industries by Eaton, is still among the highest we’ve seen to date in the sector.


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