APC to be Acquired by Schneider Electric
Power management vendor American Power Conversion (APC) and French electrical distribution provider Schneider Electric SA have agreed to merge. Under the agreement, expected to close in the first quarter of 2007, Schneider will acquire all outstanding shares of APC for approximately $6.1 billion.
“The combination of these two businesses will create an industry-leading business for both single-phase and three-phase uninterruptible power supply systems, as well as the preeminent provider of integrated systems for IT and data center applications,” said a press release.
“This transaction provides APC stockholders with an immediate and substantial cash premium for their investment in the company,” said APC President and CEO Rob Johnson. “Upon completion of the transaction, APC will become part of Schneider Electric, with greater resources to accomplish our long-term plans, which will be favorable for our employees, customers, business partners and suppliers worldwide. Both companies have a dedication to innovation and customer service that make our combined enterprise an even stronger, more competitive player in the industry.”
“This transaction is a tremendous opportunity for growth and for both companies, together, to provide unique, differentiated solutions to our combined customers,” said Schneider CEO Jean-Pascal Tricoire. “We look forward to welcoming APC to the Schneider Electric family.”
The transaction is subject to approval by APC shareholders and other customary conditions. APC’s Board of Directors has approved the transaction and intends to recommend to its shareholders that they do the same in a vote in early 2007. Approval from Schneider Electric’s shareholders is not required, said APC.