Schneider Eyes Tyco; Energy Management Tear to Continue?

Schneider’s energy-themed acquisition tear looks like it’s moving to a whole new level. On Monday morning, Bloomberg reported that French electric giant Schneider Electric is eying a take over of Tyco International (s TYC) in part to get ahold of Tyco’s building and industrial energy management systems.
The discussions are only at the preliminary stage, says Bloomberg, but Tyco has a market value of $22.3 billion, and the deal would likely be Schneider Electric’s largest purchase to date. Just last week Schneider, announced it plans to purchase both data center equipment provider Lee Technologies as well as the assets of Indian cable equipment company Digilink from Smartlink Network Systems. And late last month, Schneider announced it would spend $268 million purchasing energy procurement company Summit Energy.
Even before the Tyco deal, Schneider will have announced or completed 11 acquisitions over the past year. Power gear companies are certainly waking up to expanding into building energy management and energy efficiency through acquisition.
Tyco, which owns security division ADT, would give Schneider access to a whole new level of building control and energy management technology, as well as industrial automation and utility energy management. Schneider trails competitors Siemens (s SI), Johnson Controls (s JCI) and Honeywell (s HON) in some of these areas.
The potential deal also shows just how the business of providing automation and control networked systems — from in-buildings to industrial systems — continues to grow, thanks to the desire for companies and organizations to cut their energy consumption as a way to cut costs.
At our third annual Green:Net event on April 21 in San Francisco, we’re bringing together the pieces of the energy management and acquisition ecoystem, including execs from Schneider Electric, GE (s GE), ABB (s ABB), Cisco (s CSCO), and hot startups like OPower and BuildingIQ (and our 10 Big Ideas companies).
Image courtesy of Twid.