Schneider Electric affirms discussions with Bentley Systems for a strategic transaction
Schneider Electric has verified its involvement in talks with Bentley Systems, a leading American engineering software manufacturer, regarding a possible “strategic software transaction.”
The press statement read: “Schneider Electric confirms that, as part of its continuous exploration of opportunities in furtherance of its One Software strategy, it has been holding discussions with Bentley Systems with regards to a potential strategic transaction.”
However, the French company chose not to give more details, emphasizing that “discussions are still in the early stages. There is no guarantee that any agreements will be reached.
” In a separate press release, Bentley Systems acknowledged Schneider’s public statement without adding further comments. Earlier reports from Reuters indicated that Bentley Systems, with a market value of around $16 billion, was considering various options, including a potential sale, due to significant interest from potential buyers.
Insider sources have revealed that Schneider Electric and design software firm Cadence Design Systems (CDNS.O) are among the entities expressing interest in a potential deal with Bentley.
If a complete acquisition takes place at current valuations, this deal would rank among the top 10 acquisitions in the United States by a French company, according to financial data firm Dealogic.
Schneider, known for its expertise in energy supply management for homes, industries, and data centers, has been actively seeking to expand its software business through strategic acquisitions.
In late 2022, it finalized an $11.9 billion deal for UK-based software company Aveva Group after a prolonged negotiation period with investors pushing for a higher price.
Bentley Systems, mainly controlled by the Bentley family through a special class of shares, has formed a special committee within its board of directors to explore potential options, according to sources familiar with the matter.
These options not only include selling the company outright but also the possibility of forming a joint venture, as indicated by the same sources.
Bentley Systems recently announced the promotion of COO Nicholas Cumins to CEO, effective July 1.
Greg Bentley, the eldest of the five founding brothers, will transition from CEO to Executive Chair of the Board of Directors.
He noted that the company has seen significant growth in its ARR and operating margins since January 2022, reaching the highest levels in its 40-year history.
Headquartered in Exton, Pennsylvania, Bentley Systems develops software for engineering and construction projects, specializing in bridges, airports, utilities, and mines.
The water sector is a key focus of the company’s business.
Bentley’s software suite enables water companies and utilities to efficiently manage the entire lifecycle of water and wastewater infrastructure, from design to operation.
Their solutions facilitate the construction, design, and management of water transmission, treatment, and distribution systems, as well as sanitation systems for sewerage and storm runoff.
Smart Water Magazine recently interviewed Gregg Herrin, Vice President of Water Infrastructure at Bentley Systems, to discuss the challenges utilities face in adopting new technology and the potential benefits it offers.
Herrin emphasized the promise of digital twins in optimizing decision-making across the water industry lifecycle.
He highlighted Bentley Systems’ approach, which integrates engineering, operations, and information technologies to deliver comprehensive digital twin solutions aiming to enhance asset management, improve customer service, and mitigate risks such as flooding and water loss.
Looking ahead, Herrin envisioned a future where digital water technology minimizes common issues, enhances infrastructure resilience, and improves overall service delivery.
Schneider Electric, a fundamental part of France’s industrial sector, has shifted from its beginnings as a prominent producer of electrical equipment to emerge as a significant contributor in supplying software and equipment for various industries, including the water sector.
This transformation has greatly boosted Schneider’s market value, reaching a record high of over €120 billion ($128 billion).
In the previous year, Schneider Electric made significant announcements and business agreements related to digitalization in the water sector, including partnering with Suez, a leader in digital and circular solutions for waste and water services, to hasten the implementation of digital solutions for energy efficiency, resource preservation, and the management of carbon impact in water cycle systems.
In 2021, the company intensified its efforts in artificial intelligence by appointing its first Chief AI Officer (CAIO) and establishing a global AI Hub.
Philippe Rambach, the newly appointed CAIO, was given the responsibility of leading internal AI innovation and innovation for the company’s clients, with a focus on improving efficiency and sustainability through data-driven insights.
The primary objective was to harness AI to revolutionize industries, utilizing advanced technologies to address challenges in energy management, industrial automation, and sustainability.
Source Schneider Electric
