Schneider Electric to acquire American Power Conversion

Schneider Electric to acquire American Power Conversion

French electrical equipment group Schneider Electric has said in a statement that they are acquiring American Power Conversion.

The deal is worth around $6.1 billion and would be conducted in a cash transaction. The deal would put the value of APC share at $31 a share.

As per market analysts, Schneider is paying around 36 times expected 2007 earnings per share and 2.44 times the expected 2007 sales of APC. They call the deal fairly expensive for the value of the company.

Schneider Electric added that this deal would make it a global leader in the market for critical power services. Jean-Pascal Tricoire, chief executive officer of Schneider Electric added: “This acquisition is a significant strategic move for the company. It allows us to greatly strengthen Schneider Electric in the fastest growing segment of our core business: electrical distribution.”