UK: Controls and software company Invensys, with its well-known acr brands Ranco, Eliwell and Eberle, has agreed a £3.4bn bid by French company Schneider Electric.

Under the deal confirmed today, Schneider Electric says it plans to combine Invensys with its existing Industry division. The transaction will also give Schneider Electric’s Industry division an increased exposure to the North American market.

Announcing the deal, Jean-Pascal Tricoire, chairman and ceo of Schneider Electric, said: “The addition of Invensys’ businesses will considerably strengthen Schneider Electric’s overall offering to its industrial and infrastructure customer base, reinforcing us as a global leader in energy management solutions integrating power and automation, as well as leading software for customer efficiency. The transaction will allow Schneider Electric to benefit from increased scale and realise substantial synergy benefits from the combination.”

Schneider sees the deal creating increased revenues of around €400m per annum by 2018 and around €65m extra in profits. To achieve this, Schneider says it plans cost savings of around €140m per year by 2016 through “structural and administrative cost savings, efficiency gains at country and regional levels and synergies on procurement and production costs

Invensys employs more than 16,000 people worldwide. Headquartered in London, it has offices in Worthing and Crawley, as well as three offices in the USA.