French energy management company Schneider Electric, today launched a $2-billion cash tender offer for Spanish software devlpoper for smart electricity grids, Telvent GIT, SA.

The proposed acquisition comes a day after Schneider Electric announced plans to acquire a 74-per cent in Delhi-based Luminous Power Technologies, a maker of inverters and power storage systems, for €215 million (around Rs1,384 crore). (See: Schneider Electric to acquire 74-per cent stake in Luminous for €215 million)

Schneider will make a cash tender offer for all of Telvent's shares at $40 per share, representing a premium of 36 per cent to Telvent's average share price over the last three months.

Spanish construction-to-energy conglomerate Abengoa SA has agreed to tender its 40-per ent stake in Telvent, while the management of Abengoa SA and Telvent, who collectively hold approximately 1.5 per cent of Telvent, have also agreed to tender their shares to the offer.

Based in Madrid and listed on NASDAQ, Telvent is a software and IT solution provider of real-time management of smart infrastructures. It provides its customers with increased reliability and flexibility of power distribution networks as well as operational and energy efficiency of their infrastructures.

Telvent employs more than 6,000 people globally and operates in more than 19 countries.  Its five operating segments are energy, which comprised of 34 per cent of its 2010 sales, transportation with 28 per cent, environment with 8 per cent, global services with 19 per cent and agriculture with 11 per cent.

The company reported 2010 sales of approximately €753 million. Its key markets are in Europe with 42 per cent of 2010 sales, North America with 35 per cent and Latin America with 16 per cent.

By acquiring Telvent, Schneider Electric will integrate a high value-added software platform that presents a good fit with its own range in field device control and operation management software for the smart grid and efficient infrastructures.  The Group will also double its overall software development competencies and enhance its IT integration and software service capability, including weather services.

Post acquisition, Schneider Electric will be able to offer electrical utility customers complete substation automation and smart grid software suite: Distribution Management System, Outage Management System, Supervisory Control And Data Acquisition, Meter Data Management and Geographical Information System.

Schneider Electric said that the complementary geographical strength of the two companies will lead to significant synergies in the utilities, oil and gas, water and transportation markets. Schneider Electric can build on Telvent's strong presence in North America and Latin America. Telvent would be able to enter into many more new economies, notably in Asia-Pacific, Middle East, Russia and expand their presence more widely in Western Europe.

Jean-Pascal Tricoire, Schneider Electric's president and CEO, said, ''The acquisition is in line with our ambition to become a complete solution provider for our customers.   Telvent offers software capability that complements and integrates with Schneider Electric's offering.  It also brings complementary customer base and geographical coverage.  Together, we will be able to provide our customers with high value added solutions that integrate smart devices and full software capability, hence reinforcing our position in the smart grid and critical infrastructure space.''

Based in the western suburbs of Paris, Schneider Electric was founded in 1836 by two brothers, Eugène and Adolphe Schneider and began by manufacturing electric motors and locomotives. But today it has become a global leader in power and control solutions mainly through the over 18 strategic acquisitions it has made since the past 135 years.

The company is a specialist in integrated solutions across multiple market segments that include energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications.

Schneider Electric reported sales of €19.6 billion in 2010.