Schneider Electric Signs $3.1 Billion Deal to Buy Cognite from Aker
Schneider Electric (SU.PA) agreed to buy industrial software firm Cognite from Aker (AKER.OL) and other owners under an all-cash transaction with an enterprise value of $3.1 billion.The French energy management and automation company said Tuesday the acquisition prepares the group for the ongoing shift in industrial artificial intelligence. It intends to combine the targeted business with its industrial software unit Aveva, which is part of its industrial automation division."By bringing Cognite into Schneider Electric and AVEVA, we unite the world's most comprehensive energy management and automation infrastructure with the software and AI capabilities to make it natively intelligent," said Schneider CEO Olivier Blum.RBC Capital Markets commented that the deal will have an overall minimal business impact on Schneider, but acknowledged that it is a logical addition to improve its process software capabilities.According to Aker, the deal is on track to be the largest Norwegian software and AI exit and one of the largest industrial software transactions in Europe. From the transaction, the industrial investor expects to generate $1.48 billion in cash proceeds, after factoring in the settlement of 620 million Norwegian kroner of outstanding convertible loan to Cognite. Aker expects the sale to help fortify its financial position and investment capacity.Completion is expected in the coming quarters, subject to the approval of relevant regulators and other customary closing conditions.Schneider declined more than 2% in early trading, while Aker jumped nearly 7%.
