Schneider Electric acquires American Power Conversion
Schneider Electric and American Power Conversion recently entered into a definitive merger agreement under which Schneider Electric acquires all outstanding shares of APC for an enterprise value of approximately $5.5 billion. The price per share is U.S. $31, and will be paid in cash for a total amount of approximately U.S. $6.1 billion.
“This acquisition allows us to greatly strengthen Schneider Electric in the fastest growing segment of our core business: electrical distribution,” said Jean-Pascal Tricoire, CEO of Schneider Electric. “We expect this transaction to generate significant value by leveraging the unique complementary strengths of the two companies.”
By acquiring a global leader in the critical power market, and combining it with its subsidiary, MGE UPS Systems, Schneider Electric will become a worldwide company in the sector. The transaction is expected to close in the first quarter of 2007.
“Both companies have a dedication to innovation and customer service that would make our combined enterprise an even stronger, more competitive player in the industry,” added APC president and CEO Rob Johnson.