Rueil-Malmaison, France, June 3, 2011 — Energy management firm Schneider Electric agreed to purchase smart grid technology company Telvent for about $2 billion.
Schneider Electric will make a cash tender offer for all of Telvent's shares at a price of $40 per share, which represents a premium of 36 percent to Telvent's average share price over the last 3 months.
Abengoa SA has irrevocably agreed to tender its 40 percent shareholding in Telvent into the offer. Certain members of management of Abengoa SA and Telvent, who collectively hold about 1.5 percent of Telvent's capital, have also agreed to tender their shares.
The transaction has been approved by the board of directors of Telvent, which formed a special committee to review the transaction on behalf of the public shareholders of Telvent.
Based in Madrid, 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.
By acquiring Telvent, Schneider Electric will integrate a software platform that presents a good fit with its own range in field device control and operation management software for the smart grid and efficient infrastructures. The group will also double its overall software development competencies and enhance its IT integration and software service capability, including weather services.
Schneider Electric will be able to offer electrical utility customers complete substation automation and smart grid software suite: Distribution management system, outage management system), SCADA, meter data management and geographical information systems.
Telvent employs more than 6,000 people on a worldwide basis and operates in more than 19 countries.
Its key markets are in Europe (42 percent of 2010 sales), North America (35 percent) and Latin America (16 percent). Its presence in the other regions of the world is more limited (7 percent of 2010 sales) but growing. Its five operating segments are: Energy (34 percent of sales), transportation (28 percent), environment (8 percent), global services (19 percent) and agriculture (11 percent).
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals. The transaction is expected to close in the third quarter of 2011.