Combination of UK AVEVA and French Schneider Electric software biz

Schneider Electric SE has announced that its Board of directors and AVEVA Group plc Board have reached agreement on the terms and conditions of a combination of AVEVA and Schneider Electric industrial software business to create a global leader in engineering and industrial software.
The directors of Schneider Electric and AVEVA believe that there is a clear and compelling business logic and strategic rationale for a combination of the Schneider Electric Software Business and AVEVA, for reasons including:
– The combined entity will be a global leader in engineering and industrial software, with scale and relevance in key markets as well as an extensive technology portfolio, with combined revenues and Adjusted EBITA of approximately £657.5 million and £145.8 million respectively for the financial year ended 31 March 2017;
– The company will offer a comprehensive combined product portfolio, offering an unmatched set of solutions covering all aspects of digital asset management from process simulation to design, construction and manufacturing operations management and optimisation; and
– The Combination will create an Enlarged AVEVA Group well-positioned to take advantage of future M&A opportunities building on its scale and comprehensive industry and lifecycle solution coverage.
This transaction will, among other things:
– Enhance value proposition of Schneider Electric’s Industrial IOT platform (EcoStruxure) for industrial & infrastructure customers;
– Unlock additional value at the Enlarged AVEVA Group and Schneider Electric through the potential for revenue and cost synergies, leveraging complementary end-markets and geographical exposures, customers and product portfolios.