France's Schneider Electric SE (SU.FR) on Wednesday said that it had signed a memorandum of understanding to buy software developer IGE + XAO SA (IGE.FR) in a deal valued at around 188.4 million euros ($218.3 million).
Schneider's subsidiary Schneider Electric Industries SAS will file a tender offer Wednesday for IGE + XAO to the French market regulator, the company said in a press release.
The deal is contingent upon Schneider holding at least two thirds of IGE + XAO's share capital by the end of the offer period. The proposed acquisition price of EUR132 a share represents a 15% premium to IGE + XAO's last closing price on Nov. 7, Schneider said.
IGE + XAO produces design and simulation software for electrical installations and reported consolidated revenue of EUR29.4 million and an operational margin of 27% in its last fiscal year, Schneider said.
The deal is the latest in a string of acquisitions by Schneider as the electrical-equipment manufacturer seeks to pivot towards writing the software that drives its products.
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(END) Dow Jones Newswires
November 08, 2017 02:56 ET (07:56 GMT)