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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 roughly $15.6bn.
Schneider said on Friday it had “been holding discussions with Bentley Systems with regards to a potential strategic transaction”, adding that talks were still preliminary. The statement followed reports that the French group was in talks to take control of Bentley.
Pennsylvania-based Bentley, which makes software used in engineering projects, is controlled by the Bentley family.
The deal would be the first major acquisition under Schneider’s chief executive Peter Herweck, who took over last year, and could end up being the biggest-ever for the French company founded in the 19th century as an iron foundry.
The group is now a major specialist in automation and software that helps manage energy efficiency in buildings or data centres, and has become one of France’s most valuable companies, behind luxury groups such as LVMH and aerospace company Airbus.
It has grown through deals over the years, including the two-stage acquisition of British technology company Aveva, sealed in 2022 and valuing the company at £10.6bn.
Schneider shares fell about 2 per cent in morning trading on Friday after it confirmed it was in talks with Bentley, though they remain up by more than 18 per cent this year. Bentley shares rose 5 per cent in New York after reports of the talks emerged.
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 listed. Reuters earlier reported that Bentley was interested in exploring a sale and that other bidders could be looking at the group.
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