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Schneider Electric to acquire Telvent GITJun 01, 2011 (Datamonitor Financial Deals Tracker via COMTEX) -- Schneider Electric SA, a France-based energy management company, has signed a definitive agreement to acquire all the shares in Telvent GIT, S.A, a Spain-based provider of IT software and solutions for real-time management of mission critical infrastructure in the fields of electricity, oil and gas, water and transportation, at a price of $40 per share in cash. The transaction is valued at approximately $2,000 million on an enterprise value basis, including the purchase by Schneider Electric of Telvent's 5.50% senior subordinated convertible notes on an as converted basis. The offer price represents a premium of 16% to Telvent GIT's closing share price on May 31, 2011, and 36% to Telvent's average share price over the last 3 months. Abengoa S.A., a Spain-based technology company, has irrevocably agreed to tender its 40% shareholding in Telvent into the offer. Certain members of management of Abengoa and Telvent, who collectively hold approximately 1.5% of Telvent's capital, have also agreed to tender their shares. Abengoa will receive EUR421 million in net cash from this deal, including a EUR51 million repayment of a credit line to Telvent, and will reduce its net debt by rate EUR774 million. The transaction is expected to close in the third quarter of 2011. Deal Value (US$ Million) 2000 Deal Type Acquisition Sub-Category 100% Acquisition Deal Status Announced: 2011-06-01 Deal Participants Target (Company) Telvent GIT S.A. Acquirer (Company) Schneider Electric SA Vendor 1 (Company) Abengoa S.A. Vendor 2 (Company) Undisclosed Vendors Deal Rationale The acquisition will allow Schneider Electric to integrate a high value-added 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. It will also allow Schneider Electric to double its overall software development competencies and enhance its IT integration and software service capability, including weather services. The divestment will allow Abengoa to continue its strategy to focus on its core businesses, which include the engineering, development and operation of thermo-solar power plants, water desalination plants, transmission power lines, biofuels production plants and industrial waste recycling plants. |