The uninterruptible power supply (UPS) industry felt a surge in activity today with French company Schneider Electric SA acquiring American Power Conversion Corp (APC) in a deal estimated at $6.1bn.
Schneider Electric, which provides automation and electricity management services, had a reported turnover of €11.7bn in 2005.
Its chief executive officer Jean-Pascal Tricoire described the transaction as "a tremendous opportunity for growth for both companies" in the single-phase and three-phase UPS market.
The acquisition should see the Europe-based company expand its production in both the US and Asian markets.
APC has been a leading global player in power solutions for the technology market for over 25 years and is listed on Nasdaq.
In a statement APC's president Rob Johnson said: "Both companies have a dedication to innovation and customer service that makes our combined enterprise an even stronger player in the industry."
The deal is subject to approval from APC shareholders and the transaction is expected to be completed in the first quarter of 2007.
Schneider shares, after a 7.2 per cent fall yesterday due to a three-hour suspension, are currently at €103 in Paris. On the Nasdaq Stock Exchange, APC shares are up 26 per cent at $30 each.®