West Kingston, R.I. - American Power Conversion (APC) has agreed to be acquired by Paris-based Schneider Electric, a leading European provider of uninterruptible power supply products.
Schneider will acquire all outstanding shares of APC for $31 per share in cash, a 30 percent premium over the stock’s closing price on Friday.
The combination of the two businesses will create “an industry leading business for both single-phase and three-phase uninterruptible power supply (UPS) systems as well as the preeminent provider of integrated systems for IT and data center applications,” according to an APC release.
The transaction is expected to close in the first quarter of 2007, subject to approval by APC shareholders and other customary conditions. APC Shareholders are expected to vote on the transaction in early 2007. Approval from Schneider Electric's shareholders is not required.
Rob Johnson, APC's president/CEO, said: “This transaction provides APC stockholders with an immediate and substantial cash premium for their investment in the company. Upon completion of the transaction, APC will become part of Schneider Electric, with greater resources to accomplish our long-term plans, which will be favorable for our employees, customers, business partners and suppliers worldwide. Both companies have a dedication to innovation and customer service that make our combined enterprise an even stronger, more competitive player in the industry.”
Schneider Electric CEO Jean-Pascal Tricoire, said: “This transaction is a tremendous opportunity for growth and for both companies, together, to provide unique, differentiated solutions to our combined customers. We look forward to welcoming APC to the Schneider Electric family.”