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Can Schneider do a deal for Bentley? Citi discusses

Published 19/04/2024, 09:46
© Reuters.

Reuters reported on Thursday that Bentley Systems (BSY), an engineering software company valued at nearly $16 billion, is considering various strategic options, including a potential sale, following acquisition interest from other companies.

The company’s shares rose 2% in premarket trading Friday.

Citing its sources familiar with the matter, Reuters stated that among the interested parties are Schneider Electric (EPA:SCHN), a manufacturer of electrical equipment, and Cadence Design Systems (NASDAQ:CDNS), a company specializing in design software.

The report also says it is possible that additional bidders might enter the fray, including the German tech giant Siemens AG, which previously engaged in discussions to acquire Bentley in 2020.

Siemens, which currently holds a stake in Bentley, has maintained longstanding ties with the company.

“We see industrial logic for both Siemens and Schneider,” Citi analysts said in a note.

“We see a full takeover by Schneider as stretching the balance sheet, although Schneider has previously taken <100% stakes in software companies, as was previously the case with Aveva (now wholly owned),” they said.

Schneider already owns RIB Software, a company specializing in Building Information Modeling (BIM) software, which it acquired in 2020, “but we think the overlap is limited,” Citi added.

As for Siemens, the Munich-based company could purchase 100% of BSY “if paired with a full or partial exit of Healthineers,” its subsidiary focused on healthcare and medical technology.

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