Schneider Electric is acquiring the Bulgarian company Shelly for €1.2 billion

Schneider Electric, a global leader in energy technologies, announced today that it has reached an agreement with Shelly Group and the company’s two founding shareholders, Dimitar Dimitrov and Svetlin Todorov, for Schneider Electric to acquire Shelly Group. The Bulgarian company is a provider of Internet of Things (IoT) and smart building solutions, and the transaction will be completed entirely through a cash payment at a valuation of €1.2 billion.

Schneider Electric will structure the acquisition by launching a voluntary tender offer to acquire all shares of Shelly Group not already owned by the offeror.

Dimitar Dimitrov is expected to accept the tender offer with respect to the shares he holds, representing approximately 29% of the company’s share capital, and to reinvest a portion of the proceeds he receives jointly with Schneider Electric for a period of at least three years.

Concurrently Schneider Electric has agreed to acquire from Svetlin Todorov approximately 28% of the company’s share capital currently held by him personally and through his own company Salisto Holdings.

Schneider Electric will offer a price of €70 per “Shelly” share not already owned by the offeror. The proposed price represents a 27% premium over the price prior to the disclosure of market information regarding the transaction as of July 28, 2026 and a 22% premium over the current reference price. The offer will be subject to a minimum acceptance threshold of 95% of the total number of voting shares and will be successful only if this threshold is met or exceeded.

“Shelly Group” has agreed to the key terms under which it would be prepared to cooperate in the implementation of the planned tender offer. Based on the information currently available the Board of Directors has expressed a preliminary opinion that a voluntary tender offer made by Schneider Electric at the price indicated above would be in the best interests of the company, its shareholders, employees and other stakeholders.

If the tender offer is successfully completed it will provide all shareholders with a guaranteed opportunity to realize their investment and a one-time opportunity to receive an immediate and certain cash value for their shares.

By combining Shelly’s software-based home energy management platform with Schneider Electric’s technological leadership, we will take energy intelligence to the next level in the residential sector, in the retrofitting of existing buildings and in small commercial properties,” said Frédéric Godmel, Executive Vice President of Energy Management at Schneider Electric.

“Shelly brings distinctive capabilities in the areas of large-scale connectivity, interoperability and home energy management, which strengthen our ability to connect the physical and digital worlds in homes and small buildings,” he added.

Schneider Electric will file the tender offer with the Bulgarian Financial Supervision Commission (FSC). Following the successful completion of the FSC’s review process the company will publish the full terms of the offer in accordance with applicable laws and regulations, after which the acceptance period for shareholders will begin.

The successful completion of the tender offer will be contingent upon Schneider Electric acquiring more than 95% of “Shelly’s” share capital, with a view to subsequently conducting a mandatory buyout of the remaining shares and delisting the company from the register of public companies.

The transaction is also subject to obtaining the regulatory approvals customary for transactions of this type and is expected to be finalized by the end of the first quarter of 2027.

Translated with DeepL.