Schneider Electric to launch €1.2bn bid for Bulgaria's Shelly
France's Schneider Electric (SCHN.PA) plans to launch a voluntary public takeover offer for Bulgarian smart-home technology maker Shelly Group (SLYG.BB) at €70 per share, valuing the company at about €1.2bn, the companies said on September 24.
The acquisition would expand Schneider's presence in connected homes and residential energy management, combining Shelly's smart-device and software platform with Schneider's global reach and energy-management expertise.
Shelly shares rose 4.3% by 0859 GMT, while Schneider shares fell 0.5%.
The all-cash offer represents a 22% premium to Shelly's September 23 reference price and a 27% premium to its unaffected price on July 28, the companies said.
The offer is subject to regulatory approval and a minimum acceptance threshold of 95%. Schneider expects the deal to close in the first quarter of 2027 and said it intends to pursue full ownership and a possible delisting if successful.
Shelly's founders, Dimitar Dimitrov and Svetlin Todorov, who together hold about 57% of the company, support the deal and have agreed to sell their stakes under certain conditions.
Dimitrov, who owns about 29% and is co-CEO, plans to tender his shares and reinvest part of the proceeds alongside Schneider. He is expected to remain co-CEO after completion. Todorov, who owns about 28%, has agreed to sell his stake in two tranches, with the second subject to merger-control clearance.
RBC Capital Markets analyst Mark Fielding called the deal a "sensible bolt-on acquisition" that continues Schneider's smart-buildings strategy, noting that its value was less than 1% of Schneider's market capitalisation.
Jefferies said the deal had "strong rationale and high potential for synergies" with Schneider's residential business.
Shelly, which sells smart plugs, meters, locks and cameras as well as cloud services, has grown revenue by more than 40% annually since 2022 and sells products in more than 100 countries.
The Sofia-based company reported first-quarter 2026 revenue of €33.3mn, up 25.6% year-on-year.
Shelly said Schneider intends to maintain its headquarters, organisational structure and workforce in Bulgaria for at least three years after completion, including its research and development and engineering operations.
The offer has not yet been formally registered or published. Schneider's bid vehicle is expected to register it with Bulgaria's Financial Supervision Commission, with clearance expected by late November or early December.
Shelly announced in July that it was in preliminary talks with Schneider over a potential offer.
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