French company Schneider Electric is to acquire American Power Conversion (APC), a US manufacturer of uninterruptible power supply systems, for £2.9bn.
Schneider hopes the acquisition will boost its position in a market that is expected to continue to grow rapidly to meet increasing demand for power back-up to maintain critical systems.
Schneider chief executive Jean-Pascal Tricoire, said, “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.
“We expect this transaction to generate significant value by leveraging the unique complementary strengths of the two companies.”
The deal is expected to allow the merged company to cut costs through rationalisation of purchasing, R&D, support, sales and services functions and to add to Schneider’s product range through the further development of APC’s technology.