Investor Alert

Aug. 25, 2020, 2:26 a.m. EDT

Aveva buying OSIsoft for $5 billion

Aveva (LON:UK:AVV) said it's buying OSIsoft for $5 billion in a mostly cash deal to expand its position in industrial software. Aveva is buying the company that's 53% held by its founder and 45% held by SoftBank (TKS:JP:9984) to create a company with revenue of about £1.2 billion and Adjusted EBIT of around £330 million, or a 28% margin. Aveva shareholder Schneider Electric (PAR:FR:SU) , which holds 60% of the U.K. company, is voting for the deal and will participate in the $3.5 billion sale of discounted shares, or rights issue, to fund the acquisition. OSIsoft's founder, Dr. J. Patrick Kennedy, will become chairman emeritus and hold roughly 4% of the combined company.

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