Quickie: AVEVA + Schneider unlikely right now

Jul 27, 2017 | Hot Topics

There’s so much going on right now, between earnings, acquisitions and other news-worthy stuff, that I keep starting posts and having to move on before I can finish them. I will, I will! When, though …

But many of you are asking about possible acquisition partners for AVEVA, so: Schneider Electric just announced that it is acquiring Asco Power Technologies for $1.25 billion in cash. Asco makes automatic transfer switches and, according to Schneider CEO Jean-Pascal Tricoire, “brings to Schneider Electric a well recognized brand in North America, a strong level of know-how, prescription skills and network and a diversified customer base. Its leading position in Automatic Transfer Switch in North America complements Schneider Electric’s current offer in power distribution equipment in North America and it reinforces Schneider Electric’s global leadership in energy management.” According to Schneider Electric’s materials on the acquisition, Asco has a staff of 2,000, mainly in North America, and operates 7 manufacturing sites.

This announcement likely means that Schneider Electric is passing (again) on an acquisition of AVEVA, since even Schneider Electric might find it tough to come up with another half-billion or more dollars for a second acquisition. Too, management bandwidth to manage integration is not unlimited and investors will expect immediate cost savings and revenue boosts.

That said, I have been wrong before and wouldn’t be surprised to see Schneider, at some point, look to build out its software offering — with AVEVA or another candidate.