Vancouver, Canada [RenewableEnergyWorld.com] Xantrex Technology Inc. has entered into a definitive agreement to be acquired by Schneider Electric for a cash purchase price of CAN $15.00 per share [US $14.3/share], a move valuing the firm at approximately CAN $500 million [US $479 million].
Representing a premium of approximately 55% over the recent average Xantrex closing price, as a condition to the sale Xantrex will divest its programmable power business, which is being sold to Ametek Inc. for CAN $120 million [US $115 million] in cash.
“Schneider Electric’s outstanding global distribution, service and supply chain infrastructure combined with our world class technology and products will enable us to deliver more of our products to customers worldwide, making this a powerful combination,” said Mossadiq Umedaly, Xantrex’s chairman.
Xantrex expects to hold a special meeting of shareholders in September 2008 at which the transaction with Schneider Electric will be subject to approval by 66.7% of the shares. Xantrex’s board of directors unanimously recommends that shareholders approve the deal.
”The acquisition of Xantrex will give us a unique opportunity to capture growth in the dynamic renewable energy market,” said Jean-Pascal Tricoire, chairman and CEO of Schneider Electric.