A news item from the Department of the Blindingly Obvious. Aveva’s board has called off discussion for the “reverse merger” with Schneider Electric Software. It cited two reasons: the structure of the deal was overly complex and software integration issues. Yep, they are certainly correct on both counts.
You may recall that Schneider would give Aveva its software businesses (Wonderware, Avantis, SimSci, Indusoft, Citect I presume) and a huge chunk of cash in return for a 53% stake in the “New Aveva.”
I have watched many software mergers over the past 10 years. None ever achieved technology integration. They were all organizational and technical nightmares.
Then think about all the Wonderware technology embedded in Foxboro products. I’d get a headache even trying to sort through the legal and organizational problems.
A good software company
Wonderware (perhaps with other pieces of the software portfolio) would make a marvelous software company with adequate investment behind it. I still think that Schneider Electric will find a way to divest it. Running software is qualitatively different from running an electrical components and process automation business. Right now Schneider is still investing in the business, and that is a good sign.
