Schneider Electric inks €1.4 billion deal for German software giant

Schneider snaps up cloud-based BIM company to drive green and smart building strategy

French electrical equipment giant Schneider Electric has agreed to buy German software company RIB for €1.4 billion.

RIB’s cloud-based BIM software helps digitalise enterprises in the building and construction industries. Schneider said the acquisition will help the company cater to the growing demand for smart and carbon-free buildings.

Schneider Electric, one of the world’s leading manufacturers of data centre equipment, has offered €29 for each share in the German construction software firm, a 40.6 percent premium on the company’s Feb 12 closing price.

Schneider Electric Chairman and Chief Executive, Jean-Pascal Tricoire, said the deal consolidates the company’s position as a major player in engineering and construction digital transformation.

Meanwhile, RIB CEO Thomas Wolf, said the deal will open the door to new clients, adding that he expects Schneider to support RIB’s expansion and job creation plans:

“We are very excited about this transaction with Schneider Electric, which will bring tremendous benefits to RIB and our customers. Schneider Electric brings global reach, a leading presence in the building end-market, and unparalleled customer and partner relationships across the construction ecosystem.

“We share a common vision of the digital transformation of the entire building lifecycle, and Schneider Electric’s support will accelerate the global penetration of our technologies.”

Schneider Electric said it believed “the buildings of the future” will be “All-Digital and All-Electric”.

“These Smart Buildings will deliver efficiency and sustainability by leveraging real-time digital analytics for optimum performance across the building lifecycle. With around 40% of worldwide carbon emissions being contributed by buildings, there is an urgent need for this transition globally.”

The offer is dependent on a minimum acceptance threshold of 50 percent, but is expected to be completed Q2. At which point, its results will be represented in Schneider’s financials.