Schneider's $11.9 Billion Takeover of Aveva Backed by Investors

Aveva Group Plc shareholders have approved a £9.9 billion ($11.9 billion) buyout offer from Schneider Electric SE, after a prolonged battle from investors who wanted a higher price for the UK software company.

According to a company statement on Friday, 83% of investors voted in favor of French industrial conglomerate Schneider buying the roughly 41% of Aveva it doesn’t already own. The acquisition now faces a final court hearing in the first quarter of 2023, after which the deal would conclude.

Aveva shares rose 0.3% to £31.91 in London, while Schneider dropped 0.3% to 142.32 euros at the close of trading in Paris.

Schneider's offer of £32.25 per share represents a 47% premium to Aveva's share price on 23 August, the day before Bloomberg News first reported on a possible bid. This is up from Schneider's initial offer of £30.75 per share, which was made in November. Some investors have claimed that the initial offer was opportunistic, given that Aveva's stock price had declined by 47% in the 12 months before Bloomberg's report.

Schneider, which already owns about 59% of Aveva, has said that the latest price will be its final offer unless a rival bidder emerges. Hedge fund Davidson Kempner Capital Management, which was building a stake in Aveva, as well as M&G and Canada's Mawer Investment Management, were among the shareholders who resisted the deal at the previous price.

Aveva, based in Cambridge, England, provides software tools for utilities, oil and gas producers, transportation firms and other companies, according to its website. In 2017, Schneider agreed to combine its own industrial software business with Aveva's, and took control of the group. Aveva has since grown through acquisitions, buying SoftBank Group Corp.-backed industrial software maker Osisoft in 2020 at a valuation of $5 billion including debt.