Aveva Group (LSE:AVV) PLC said that French industrial conglomerate Schneider Electric has confirmed plans to buy the remaining shares in the company that it does not already own - around 41% - valuing the UK software firm at £9.482bn.
Under the deal, Aveva shareholders will receive 3,100p in cash for every share held implying an enterprise value of £10.154bn and equivalent to a multiple of 13.2 times enterprise value to annual recurring revenues.
The offer price is a premium of approximately 41% to Aveva’s closing share price of 2,192p on August 23, 2022, before Schneider first stated its intention to consider a full buyout.
In addition, Aveva shareholders will still receive an interim dividend of up to 13p per Aveva share for the six-month period to September 2022.
Schneider took majority control of Aveva in 2017 in a reverse takeover that enabled the company to retain its London listing with the French group paying £3bn at that time.
Schneider said the deal offers a unique proposition to combine energy and process data and software for the benefit of customers and will accelerate Aveva’s transition to a hybrid cloud-based subscription model with a full focus on customer value.
In a statement, Philip Aiken, the chairman of AVEVA said: “AVEVA has been on a remarkable journey, undergoing significant transformation and growth - most recently through the combination with Schneider Electric Software and the acquisition of OSIsoft - generating substantial shareholder value and creating a world leader in its field.”
“The unanimous recommendation of the acquisition by the Committee of Independent Directors took into consideration the value proposition for our minority shareholders as well as the interests of other stakeholders in the business," he added.