Schneider Electric SE has finalized an agreement to purchase Cognite for $3.1 billion entirely in cash, aiming to bolster its industrial data and AI software capabilities. The French energy-management company will take full ownership of the privately held firm's shares from Aker ASA of Norway and other stakeholders, the firms announced on Tuesday.
Schneider CEO Olivier Blum described Cognite as "a truly industrial grade AI platform that turns the complexity of operational data into a competitive advantage." Schneider intends to merge Cognite with its existing industrial software unit, Aveva.
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
This acquisition occurs at a time when European industrial firms are adopting AI more widely on factory floors to boost efficiency and simplify workflows. Competitors such as Siemens AG are likewise advancing in automation and AI for manufacturing environments.
Aker ASA, the industrial investment firm that helped establish Cognite in 2017 and scale up the company, anticipates receiving around $1.48 billion in cash from this deal, including repayment of an outstanding convertible loan. Schneider's stock has climbed 26% over the past year, hitting record highs as investors favor companies supplying the infrastructure needed for the AI surge. Valued at about €165 billion ($188 billion), Schneider ranks as France's fourth-largest company by market capitalization. The company is also expanding its role in providing energy and cooling solutions for data centers, which underpin the computing and storage demands of AI.
The transaction is anticipated to close within the next several quarters.
Cognite, launched in 2017, specializes in turning complex operational data from industrial assets into real-time, AI-powered insights. Its platform is used by major energy, manufacturing, and process companies to improve safety, reduce downtime, and boost efficiency. The acquisition deepens Schneider's industrial software portfolio, which already includes Aveva, a leader in engineering and operations software.
By combining Cognite's data integration and AI capabilities with Aveva's digital twin and asset management tools, Schneider aims to offer a comprehensive solution for industrial digitization. This move mirrors a broader industry trend: large industrial conglomerates are aggressively acquiring AI and software firms to gain an edge in the smart factory market. The deal also underscores the strategic value of data in modern manufacturing, where the ability to analyze and act on machine data is becoming a key competitive differentiator. The growing emphasis on software-driven automation further reinforces why industrial giants are investing heavily in digital tools to unlock new revenue streams from connected equipment.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass
