French energy management company Schneider Electric is moving to buy Spain’s Telvent for 1.4 billion euros.
Telvent makes information technology systems for so called smart grids in the electricity industry, as well as for transport, and oil-and-gas companies.
The deal represents a way for Schneider to boost its presence in software to complement its equipment sales.
It also fits with Schneider’s strategy of making small-to-medium acquisitions to bolster its existing businesses and expand into emerging markets, such as India and Russia.
Spain’s construction-to-energy conglomerate Abengoa agreed to sell its 40 percent stake in Telvent to Schneider in the deal.
James Stettler, an analyst at Unicredit, said the deal made strategic sense and that the price was “not cheap but seems reasonable” for Schneider.
This is the second deal in two days for Schneider. On Tuesday, the French group announced the acquisition of 74 percent of Indian energy storage firm Luminous for 215 million euros, a deal intended to boost its presence in a key emerging market.