Schneider Electric to Launch EUR1.2 Billion Takeover Offer for Shelly Group
Schneider Electric (SU.PA) will launch a tender offer to acquire Sofia, Bulgaria-based IoT and smart building systems provider Shelly Group (SLYG.F) for 1.2 billion euros, the companies said Thursday.The French industrial technology company is offering 70 euros in cash per Shelly Group share. Directors of the Bulgarian technology and platform company said the offer is in the interests of shareholders, employees, and other stakeholders, based on preliminary assessment of the transaction."With Schneider Electric as a long-term partner, we can bring Shelly's technology to more homes and buildings globally, while retaining the entrepreneurial spirit, product focus and Bulgarian roots that have defined us from the beginning," said Shelly Group Co-chief Executive Officer and co-founder Dimitar Dimitrov.Dimitrov committed to tender his 29% stake in the company for acceptance of the offer, while fellow co-founder Svetlin Todorov agreed to a two-tranche divestment of a combined 28% stake in Shelly Group to Schneider.Completion of the takeover is expected in the first quarter of 2027, subject to the approval of shareholders and relevant regulators, including the Bulgarian Financial Supervision Commission. Schneider plans to delist Shelly Group following completion."We expect this acquisition to bolster Schneider Electric's presence in the residential market in Europe and, in our view, Shelly Group's offerings will also reduce the cyclicality of its more traditional exposure to this market. We believe that the consideration paid is reasonable given the growth profile and operating margins of the group. This will keep the leverage towards the high end of the group's targets, but we view this as effective capital allocation as the acquisition is certainly a right fit," commented AlphaValue/Baader Europe.Schneider's shares rose marginally in Paris at midday trading, while Shelly Group's shares rose nearly 4% in Frankfurt.
