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Pelco to be acquired by Schneider Electric

Pelco officials announced on 1 August that the company has reached an agreement to become acquired by Schneider Electric.

Schneider Electric has 112 000 employees and operations in 190 countries. The price to be paid for this transaction is $1,22 billion expressed as an enterprise value on a cash-free, debt-free basis. In addition, Schneider Electric will pay to the sellers the net present value of a tax benefit resulting from the step-up of Pelco's assets, representing $320 million. As a consequence, the total price paid in cash at closing will be $1,54 billion. The transaction is subject to anti-trust and other regulatory clearance and is expected to close by October.

Under the new ownership, Pelco will operate within Schneider's Building Automation Business Unit, TAC, which is headquartered in Malmo, Sweden. The company will be managed in an autonomous manner and will be in charge of TAC's Fire and Security Product Division, globally. The company's entire management team and all of the company's worldwide employees will continue as employees of Pelco with this transaction. The company name and the Pelco brand will also remain unchanged.

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