Schneider Electric to Sell Part of Telvent

Schneider Electric signed an agreement for the sale of Telvent DTN to TBG AG, a private holding company headquartered in Zurich, Switzerland. The transaction is based on an enterprise value of approximately $900 million.

TBG focuses on critical business information services and high added value industrial niches.

Telvent DTN provides information services, supply chain connectivity tools and decision support solutions in agricultural, energy and environmental industries. It was acquired by Schneider as part of its €1.4 billion acquisition of Telvent in 2011 and was consolidated under the Schneider’s Infrastructure division where it recorded revenues of $213 million in 2016. The transaction values the business at about 17x its adjusted EBITA in Schneider Electric 2016 accounts, Schneider Electric said in a release.

Schneider said its strategic review launched last year concluded that the unit was not a core offering for the Group.

Schneider said it will retain Telvent’s portfolio of technologies and software for advanced grid management, pipeline management, geographical information systems and SCADA, which generated revenues of more than €200m in 2016 and are growing in the “high single digit.”

The transaction is expected to close in Q2 2017. Following the closing of the transaction, Schneider Electric intends to use the net proceeds from this transaction in a share buybackprogram of around €1 billion over a two-year period.