Date: 01/06/2011

Schneider Electric acquires TELVENT

Schneider Electric has acquired Telvent, an expert in IT software and solutions for real-time management of mission critical infrastructure in the fields of electricity, oil & gas, water and transportation.

Schneider Electric will make a cash tender offer for all of Telvent's shares at a price of $40 per share, which represents a premium of 36% to Telvent's average share price over the last 3 months. Abengoa SA has irrevocably agreed to tender its 40% shareholding in Telvent into the offer. Certain members of management of Abengoa SA and Telvent, who collectively hold approximately 1.5% of Telvent's capital, have also agreed to tender their shares.

The transaction has been approved by the board of directors of Telvent, which formed a special committee to review the transaction on behalf of the public shareholders of Telvent.

By acquiring Telvent, Schneider Electric said it will integrate a high value-added software platform that presents a good fit with its own range in field device control and operation management software for the smart grid and efficient infrastructures.

Through this acquisition Schneider Electric said it will be able to offer electrical utility customers complete substation automation and smart grid software suite: DMS (Distribution Management System), OMS (Outage Management System), SCADA (Supervisory Control And Data Acquisition), MDM (Meter Data Management), GIS (Geographical Information System).

Jean-Pascal Tricoire, Schneider Electric's President and CEO, commented: "The acquisition is in line with our ambition to become a complete solution provider for our customers. Telvent offers software capability that complements and integrates with Schneider Electric's offering. It also brings complementary customer base and geographical coverage. Together, we will be able to provide our customers with high value added solutions that integrate smart devices and full software capability, hence reinforcing our position in the smart grid and critical infrastructure space. We look forward to welcoming the Telvent teams who will enrich the cultural diversity and capability of our company. "

Ignacio González Domínguez, Telvent's Chairman and CEO, said: "We see strong complementarities of Telvent's solution offering and that of Schneider Electric as well as a good cultural fit of people and spirit. We believe that our customers will benefit highly from this combination. With Schneider Electric, Telvent expects to expand its global footprint, especially in the fast growing new economies. We look forward to this next phase of the development of our company."