Paris-based Schneider Electric, leading provider of solutions for electrical distribution, industrial control and automation projects has announced it has executed a definitive merger agreement with American Power Conversion (APC), a global leader in power availability solutions under which Schneider Electric will acquire all outstanding shares of APC in an aggregate transaction valued at approximately US$6.1 billion.
According to a statement released by Schneider Electric, the acquisition of APC and its incorporation with subsidiary MGE UPS, will help make the French company 'pre-eminent in the critical power sector', a sector the company notes, enjoys a fast and sustainable long-term growth. This growth is driven by the need for power supply continuity in an increasing number of critical applications, concerns regarding reliability of the power grid and development of digital information traffic. It is estimated that the 2006 global market for UPS systems is worth $7 billion, 40 per cent of which is attributed to the data centre market. Long-term growth in this sector is predicted to be between 6-to-8 per cent.
Critical power is at the heart of one Schneider Electric's core business: electrical distribution, of which it is the fastest growing segment.
The transaction is expected to close in the first quarter of 2007. APC's shareholders are expected to vote on the transaction in early 2007. Approval from Schneider Electric's shareholders is not required.