Aveva, the London-listed software company, is signing a deal that French industrial group Schneider Electric will devour in a deal worth around £9 billion.
Sky News has learned that the boards of the two companies and their advisers are discussing a price of more than £30 a share for Schneider to buy back about 40% of the Aveva shares the company does not yet own.
Banking sources said on Monday that a deal is expected to be struck before the September 21 deadline imposed by the UK’s takeover watchdog.
At just over £30 a share, the deal is expected to cost Schneider around £3.5 billion.
Given the French company’s current control of Cambridge-based Aveva via a 60% stake, a full acquisition is unlikely to spark significant criticism over the perceived erosion of British technology platform.
In recent weeks, a flurry of buyout bids from foreign companies and private equity firms has emerged against London-listed technology businesses such as GB Group and MicroFocus.
Aveva is also reported by industry executives to be negotiating a range of commitments related to its brand and future investments under Schneider’s full ownership.
Aveva’s shares closed on Monday at £29.59, giving the company a market capitalization of more than £8.8 billion.
Investment bankers at Citi are advising Schneider on the deal, while Lazard advises Aveva.
Aveva declined to comment.
