(AOF) – Schneider Electric (+0.43% to 232.30 euros), has ended its discussions with the American engineering software company Bentley Systems, as part of a potential transaction. Invest Securities explains that “even if the operational and strategic rationale made sense, this operation raised concerns about the creation of value of the operation given the size (enterprise value of $18.5 billion), the valuation of Bentley and the need to partly finance the transaction in securities”.
The analyst specifies that Bentley Systems has a PER of 54.4 for 2024 and 47.5 for 2025.
Schneider Electric will now remain focused on its capital allocation priorities. She will not provide “additional details regarding preliminary discussions or the proposed transaction.” Discussions with Bentley Systems, an American publisher of engineering software for infrastructure, were revealed on April 19. In addition, the French group confirms that it “will remain agile and opportunistic with regard to its inorganic development.
However, it “reiterates the need for a disciplined approach to creating value for stakeholders in any potential strategic transaction.”
Reacting to the announcement of discussions between the two groups, Berenberg was “surprised that the specialist in the digital transformation of energy management and automation was exploring an acquisition of this magnitude, since it seemed to be in contradiction with the message ‘evolution not revolution’ from the new general director, Peter Herweck.
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