(Bloomberg) — Schneider Electric SE is in talks over a potential deal with engineering software maker Bentley Systems Inc., potentially paving the way for one of the largest acquisitions of a U.S. company by a French company.
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The talks are part of Schneider Electric’s strategy to expand its industrial technology capabilities and are at an early stage, the company said Friday. Bentley separately acknowledged Schneider’s statement without commenting further.
Bentley Systems was little changed at $52.13 per share at 12:06 p.m. in U.S. trading, giving it a market value of $17 billion. The stock was up 3.9% on Thursday when Reuters first reported that the company was exploring options including a sale, citing people familiar with the matter. Schneider Electric fell 3.2% to €208.40 in Paris.
Based in Exton, Pennsylvania, Bentley makes software for engineering and construction projects – from bridges and airports to utilities and mines. Schneider, one of France’s oldest and largest industrial companies, has evolved from primarily a maker of electrical equipment to a supplier of software and equipment for buildings, data centers and factories.
Schneider’s market value has soared to a record more than 120 billion euros after its share price tripled in five years, potentially giving the company more leverage for a deal.
Including net debt, Bentley Systems is valued at approximately $18.5 billion. At that price, a takeover by Schneider Electric would be one of the largest U.S. deals ever by a French company, matching LVMH’s purchase of jeweler Tiffany & Co. worth $17.4 billion would be surpassed in 2021, but after Sanofi’s $19.1 billion deal for drugmaker Genzyme Corp. in 2011. .
Schneider Electric previously acquired British industrial software company Aveva Group Plc in two phases, buying almost 60% in a deal worth £1.7 billion in 2018 and acquiring the rest in 2023 for £3.9 billion.
–With help from Phil Serafino.
(Updates stock prices in third paragraph)
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