Schneider Electric Said Near Deal for Smart Device Firm Shelly

Schneider Electric SE is reportedly in discussions to acquire Shelly Group SE, a Bulgarian manufacturer of smart home devices. The French industrial technology firm is working with advisors to negotiate a deal that would value Shelly Group at around €1.3 billion, or approximately $1.5 billion, based on a proposed offer of €70 per share. This includes significant stakes held by Shelly's founding shareholders, according to sources familiar with the matter.

Shelly Group SE confirmed it is in preliminary discussions with Schneider Electric regarding a potential tender offer for its shares following recent media reports. The company, however, emphasized that there is no certainty these discussions will lead to an offer, nor are the terms or timing of any potential offer assured at this stage. Shelly Group stated it would make further announcements as regulatory requirements dictate.

News of the potential acquisition has already impacted Shelly's stock performance. Shares of Shelly, traded on both the Bulgarian Stock Exchange and the Frankfurt Stock Exchange, saw a significant surge. On the Frankfurt Stock Exchange, shares were up over 10% to €64.4 each, while on the Bulgarian Stock Exchange, the daily increase was nearly 6%. This indicates positive market reaction to the prospective deal.

This potential acquisition would strategically bolster Schneider Electric's presence in the smart home and Internet of Things (IoT) sectors, a key growth area for industrial technology companies. Schneider Electric, a rival to companies like ABB, is looking to strengthen its smart home offerings through this deal. Shelly Group competes with other smart home technology providers, such as Sweden's Plejd.

The discussions are ongoing, and a final agreement is not yet guaranteed. Schneider Electric has not publicly commented on the negotiations. The transaction highlights the increasing consolidation and competition within the smart device market as larger industrial players seek to integrate advanced home automation and IoT capabilities into their portfolios.