Bentley Systems explores options amid takeover interest, sources say

Bentley Systems

18/04/2024 18:39

(Adds more background on Bentley in paragraphs 7-13, share
movement)
    By Milana Vinn and Anirban Sen
       April 18 (Reuters) - Bentley Systems  BSY.O , an
engineering software company with a market value of nearly $16
billion, is exploring options that include a sale after
attracting acquisition interest, according to people familiar
with the matter. 
    Among the companies that have expressed interest in a deal
with Bentley are electrical equipment maker Schneider Electric
 SCHN.PA  and design software firm Cadence Design Systems
 CDNS.O , one of the sources said.
    The Bentley family controls the eponymous company through a
special class of shares. The company has formed a special
committee of its board of directors to explore its options, that
include an outright sale of the company as well as a joint
venture, the sources said.
    Bentley's shares jumped more than 5% on Thursday on the news
of a potential deal. 
    The sources requested anonymity because the discussions are
confidential and cautioned that no deal is certain.  
    Bentley Systems and Cadence did not immediately respond to
requests for comment. Schneider declined to comment. 
    It is entirely possible that other bidders, including
Siemens AG  SIEGn.DE  - which held talks to buy Bentley in 2020
- could emerge, the sources said. 
    Siemens, which holds a stake in Bentley, has longstanding
ties with the company. The two companies signed a strategic
alliance in 2016 and expanded on that agreement two years later
to set up an initiative to make joint investments. Bentley chose
to proceed with an initial public offering in 2020 after its
deal talks with Siemens did not progress, one of the sources
said. 
    As part of its ties with Bentley, Siemens has a right to bid
for Bentley, if the latter explores a deal with an interested
buyer, one of the sources added. Siemens declined to comment. 
    Exton, Pennsylvania-based Bentley makes software that helps
manage engineering projects in industries such as
infrastructure, design and construction. It currently has more
than 5,200 employees in over 40 countries, according to its
website. 
    Founded in 1984, Bentley recently announced a CEO
transition. In March at the time of the company's 40th
anniversary, longtime CEO Greg Bentley said he would step down
from his role and transition to the role of executive chairman.
Current COO Nicholas Cumins will become the new CEO, effective
July 1. 
    In March, Cadence agreed to buy BETA CAE Systems
International AG, which makes software for analyzing car and jet
engine designs, for $1.24 billion in cash and stock. Last year,
Cadence was one of the bidders for design software firm Ansys,
according to people familiar with the matter.    
    Schneider has been attempting to grow its software business
through acquisitions in recent years. In late 2022, Schneider
agreed to a $11.9 billion takeover of UK software firm Aveva
Group after a prolonged battle with investors who pushed for a
higher price. 

 (Reporting by Milana Vinn and Anirban Sen in New York; Editing
by Lisa Shumaker)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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