(Bloomberg) — Schneider Electric SE is in talks about a potential deal with $17 billion engineering software maker Bentley Systems Inc., in what would be one of the biggest takeovers of a US company by a French corporation.
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The discussions are part of Schneider Electric’s strategy to build up its capabilities in industrial technology, and are at an early stage, it said Friday. Bentley acknowledged Schneider’s statement without commenting further.
Bentley Systems fell about 1% in early US trading after climbing as much as 8.1% Thursday, when Reuters first reported that it’s exploring a sale, citing people people familiar with the matter. Schneider Electric fell 2.5% in Paris.
Based in Exton, Pennsylvania, Bentley makes software for engineering and construction projects, from bridges and airports to utilities and mines. Schneider, one of France’s oldest and biggest industrial companies, has evolved from primarily a maker of electrical gear to a provider of software and equipment for buildings, data centers and factories.
Schneider’s market value has swelled to a record of more than €120 billion after its share price tripled in five years — potentially providing it more firepower for a deal.
Including net debt, Bentley Systems is valued at about $18.5 billion. At that price, an acquisition by Schneider Electric would be one of the biggest US deals ever by a French corporation, surpassing LVMH’s $17.4 billion purchase of jeweler Tiffany & Co. in 2021, but trailing Sanofi’s $19.1 billion deal for drugmaker Genzyme Corp. in 2011.
Schneider Electric previously acquired UK industrial software company Aveva Group Plc in two stages, purchasing almost 60% in 2018 in a deal valued at £1.7 billion ($2.1 billion) and acquiring the rest in 2023 for £3.9 billion.
–With assistance from Phil Serafino.
(Updates with Bentley statement, shares)
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