Majority shareholder Schneider Electric is considering a bid for industrial software supplier AVEVA (LON: AVV), but no proposal has been made yet.
There were previously bid talks in 2016 and that pushed the share price up to the equivalent of 1488p. In 2017, AVEVA and Schneider Electric decided to combine their industrial software businesses and the deal was completed in March 2018. As part of the deal there was a distribution of 1015p a share to AVEVA shareholders, which was a total payout of £650m. That is why Schneider Electric has a 58.9% stake in AVEVA.
The share price peaked at 4264p in February 2020, and it rose 598p to 2781p on the news of the bid approach. That values AVEVA at £8.4bn.
In the year to March 2022, annualised recurring revenues were £768.7m. Total revenues were £1.19bn and the pre-amortisation profit was £219.6m, up from £132.3m the previous year.
A transition to subscription and SaaS revenues will hold back reported revenues this year. Ceasing business in Russia will also hold back progress – it was 2% of revenues last year.
Schneider Electric says that whether or not it makes a bid it is committed to AVEVA and its future progress.
