Schneider Electric is considering a deal for software maker Bentley Systems

French software and automation company Schneider Electric has said it is in talks over a potential deal with Bentley Systems, a US software specialist with a market value of about US$15.6 billion ($24.4 billion).

Bentley listed on the Nasdaq
Systems bought Christchurch-based Seequent, a maker of geological modeling software, for $1.05 billion (then $1.45 billion) in one of New Zealand’s biggest technology deals. Last June, Seequent’s Liz Crawshaw told the Herald that the American owner left it to its fate. The workforce had grown from 430 to 700.

In 2018, Schneider closed a factory in Christchurch and moved 50 roles to sites in Adelaide and Vietnam.

The French company said on Friday it had “held discussions with Bentley Systems regarding a possible strategic transaction”, adding that the talks were still preliminary. The statement followed reports that the French group was in talks to take control of Bentley, a company that makes software used in the engineering of infrastructure projects.

A purchase of Pennsylvania-based Bentley, which is controlled by members of the Bentley family, would be Schneider’s first major strategic move under CEO Peter Herweck, who succeeded Jean-Pascal Tricoire last year. It would be the largest acquisition of the French company, which was founded in the 19th century as an iron foundry.

“It is a surprise to us that Schneider is exploring an acquisition of this size… as it appears to run counter to the ‘evolution, not revolution’ message since the CEO transition,” Berenberg analyst Philip Buller said in a note note.

He added that while the size could make the acquisition a bad idea, Schneider had a good track record in its approach to deals.

“Many deals in recent years have made us cringe at the announcement, but have ultimately proven to be well-timed, well-structured and ultimately put the company in an advantageous position,” he said.

The Paris-listed group’s shares fell 2.25 percent to €210.5 billion on Friday, giving the company a market value of €120.5 billion. This year they continue to rise by more than 18 percent. Bentley shares rose 5 percent in New York after reports of talks emerged.

With annual sales of €36 billion last year and a large presence in China, Schneider – a specialist in automation and software that helps manage energy efficiency in buildings and data centers – has benefited from the push from companies and governments to reduce their energy consumption. to limit.

The French group has grown through acquisitions over the years, including the two-phase takeover of British technology company Aveva, which closed in 2022 and valued the British company at £10.6 billion.

The Wall Street Journal first reported that Schneider was in talks with Bentley for a deal that would combine their software businesses but keep them publicly traded. Reuters had previously reported that Bentley was interested in a sale and that other bidders may be looking at the group.

Bentley has a close relationship with German group Siemens, which was reportedly considering a takeover in 2020. Both groups entered into a strategic alliance in 2016 and have since complemented it by financing a joint innovation program.

Siemens, which declined to comment Friday, had bought shares in Bentley.

Written by: Sarah White in Paris. Additional reporting by Arjun Neil Alim in Frankfurt. With reporting by Herald staff.

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