Siemens on the Verge of Largest Acquisition in Corporate History: Sources

Exclusive: German engineering giant Siemens AG is in advanced talks to acquire UK-based software company Aveva Group plc in a deal that could be valued at over £10 billion ($13.5 billion), according to people familiar with the matter.

If successful, the acquisition would be the largest in Siemens' 175-year history and would significantly boost its digital offerings in the industrial automation and smart infrastructure sectors. Aveva is a global leader in industrial software, with a strong presence in the oil and gas, power, and manufacturing industries.

The sources cautioned that the talks are ongoing and could still fall apart, but they said Siemens is eager to complete the deal before the end of the year. Siemens declined to comment on the matter, while Aveva did not immediately respond to a request for comment.

The potential acquisition comes as Siemens is undergoing a major transformation under CEO Roland Busch, who has pledged to focus on digitalization and sustainability. Siemens has already made several significant acquisitions in recent years, including the €4.7 billion ($5.1 billion) purchase of process automation company Process Systems Enterprise (PSE) in 2021.

Aveva, founded in 1967, has a market capitalization of £9.2 billion ($12.3 billion) and employs over 6,000 people worldwide. The company's software is used by some of the world's largest industrial companies, including BP, Shell, and Toyota.

Analysts say the acquisition would give Siemens a major boost in the rapidly growing market for industrial software. "This would be a game-changer for Siemens," said one analyst who covers the company. "Aveva is a leader in industrial software, and this would give Siemens a much stronger position in this market."

The deal is also expected to face scrutiny from regulators, particularly in the UK, where Aveva is headquartered. However, sources say Siemens is confident that it can address any competition concerns.