Schneider Electric has agreed to buy the rest of UK software firm Aveva, in an acquisition worth nearly £9.5 billion (US $11 billion).

The French firm has owned 60% of Aveva since a £3 billion reverse takeover in 2017. The deal saw Schneider fold its software assets into the UK company.

Aveva, a FTSE 100 company, has more than 6,400 employees. Schneider Electric, which has about 4,000 UK staff, reportedly has no plans to change Aveva’s employee base. It also intends to keep to keep it as a software business, maintaining its headquarters in Cambridge, UK.

The FT noted that the deal strips the London stock market of one of its few remaining large tech groups. Last month, Canada’s OpenText acquired UK software developer Micro Focus International in a £5.1 billion deal.

Schneider said it would pay £31 a share in cash for the 40% of Aveva it did not own. Look for the acquisition to go final sometime next year.

Aveva is one of Britain’s oldest technology companies. Its software encompasses the energy, infrastructure and manufacturing sectors, where there is a crossover with Schneider.

Schneider Electric’s Juan-Pascale Tricoire

Schneider chair and chief executive Jean-Pascal Tricoire spoke to analysts on Wednesday. He said the company wanted to “accelerate the path to deliver to our customers one data hub.”

Deeper Collaboration with Partners

Aveva on Wednesday confirmed that it had accepted the proposed offer. It described Schneider as “a supportive shareholder and partner.” This was demonstrated most recently in the $5 billion acquisition of operational data platform developer OSIsoft in March 2021.

The company added that customers are increasingly turning to industrial software to find greater efficiency and sustainability. As such, the firm is committed to empowering businesses to optimize how they work.

It also focuses on “driving deeper collaboration with its unique ecosystem of suppliers, partners, and customers.” The partner system continues as an integral part of Aveva’s strategy of growth.

“The full combination with Schneider Electric is intended to enable Aveva to execute its strategy faster, and further enhance its customer proposition.”

As of 2021, Aveva had 100 distributors globally, which work with around 5000 system integrators. About a third of its business goes through its distribution network, although the company wants to increase this to 50% within five years.

Aveva had previously issued a profit warning in which it flagged inflationary pressures and said growth would slow in 2022.