U.K.-based Aveva is planning to buy SoftBank-backed U.S. tech company OSIsoft for a total consideration of $5 billion. Aveva is looking forward to expanding its position in industrial software. The technology sector has seen a wave of consolidation in the last few months. Last month, Analog Devices agreed to acquire competitor chipmaker Maxim Integrated Products for $21 billion in an all-stock deal.
What is Aveva Group?
Aveva Group is an information technology company. The company seeks to expand its presence in industrial software services. Aveva is acquiring OSIsoft, of which 50.3 percent is held by its founder, J. Patrick Kennedy, 44.7 percent is held by SoftBank, and the remaining 5 percent is held by Mitsui & Co.
Aveva’s majority shareholder, Schneider Electric, has agreed to support the deal. Aveva CEO Craig Hayman said, “The acquisition of OSIsoft is perfectly in line with our strategic vision and it will accelerate the Enlarged Group's role in the digitisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, Cloud, data visualisation and artificial intelligence. The acquisition will enable AVEVA to broaden and deepen its relationships with existing and new customers and bring a more comprehensive product portfolio to market.”
What are the Aveva-OSIsoft deal details?
Aveva Group LLC agreed to acquire OSIsoft for about $5 billion. Aveva is likely to finance the acquisition by about $4.4 billion in cash and a rights issue of $3.5 billion. The transaction is likely to close by the end of this year. The combined company is expected to generate annual sales of approximately 1.2 billion British pounds ($1.6 billion) and adjusted EBIT of about 330 million pounds.
What is Aveva's stock price now?
Aveva is listed on the London Stock Exchange under ticker symbol AVV. The stock had risen 3.8 percent to 4,496 pence as of 5:29 a.m. ET today. On Monday, Aveva stock closed 1.8 percent higher, at 4,332 pence. The stock has risen by 3.5 percent in the last five days, and 17.1 percent in the last year.
Aveva stock is trading 16.0 percent below its 52-week high of 5,350 pence and 70.7 percent above its 52-week low of 2,634 pence. Year-to-date, the stock has declined by 3.4 percent.
What is SoftBank's stock price today?
SoftBank is listed on the Tokyo Stock Exchange under stock code 9984. On Tuesday, SoftBank stock closed 2.4 percent higher at 6,422 Japanese yen. The stock has risen by 3.7 percent in the last five days, and 38.2 percent in the last year.
SoftBank stock is trading 9.3 percent below its 52-week high of 7,077 Japanese yen and 146.1 percent above its 52-week low of 2,610 Japanese yen. Year-to-date, the stock has increased by 35.0 percent.