Schneider Electric Launches 1.2 Billion Euro Bid for Smart Home Firm Shelly Group

2026-09-24 hardware

Brussels, Thursday 24 September 2026
Schneider Electric has agreed to acquire Bulgarian smart-device maker Shelly Group for €1.2 billion, aiming to boost its home energy management and automation portfolio by early 2027.

Strategic Alignment and Deal Structure

On Thursday, 24 September 2026, French industrial giant Schneider Electric SE announced a formal agreement to initiate a voluntary public takeover bid for Shelly Group SE, a prominent Bulgarian developer of smart home and building automation systems [1][4]. The proposed transaction values the Sofia-headquartered IoT specialist at approximately €1.2 billion ($1.37 billion) excluding debt [1][4][5]. Under the terms of the investment agreement signed by both companies, Schneider Electric will launch the tender offer through its subsidiary, SE 2026 A SAS, targeting all outstanding shares of the SDAX-listed firm [5][7]. This strategic move is designed to integrate Shelly’s software-led home energy platform directly into Schneider’s extensive global electrification and smart-building portfolio [1][5].

Premium Valuation and Market Response

The takeover offer is set at €70.00 per share in cash [1][7]. This offer price represents a significant premium over recent market valuations; specifically, it is 8.7% above Shelly’s closing share price on Tuesday in Frankfurt, and 20% higher than where the stock stood in late July 2026, just before initial reports of exploratory talks emerged [4]. Compared to the Wednesday closing price of €64.40 on 23 September 2026, the €70.00 offer represents a premium of 8.696% [1]. Shelly’s board of directors has preliminarily endorsed the offer, stating that the transaction aligns with the long-term interests of the company, its shareholders, employees, and other key stakeholders [1][7]. The founders of Shelly Group, Dimitar Stoyanov Dimitrov and Svetlin Iliev Todorov, who remain the company’s largest shareholders, are central figures in this transition as the company transitions from public exchanges in Frankfurt and Sofia to Schneider’s corporate umbrella [3].

Integrating IoT and Energy Management Systems

The acquisition of Shelly Group, which competes directly with Nordic smart-home players like Sweden’s Plejd, represents a major expansion of Schneider Electric’s high-tech systems and materials (HTSM) footprint [2]. Shelly’s product line includes internet-connected smart sensors, intelligent lighting solutions, and smart wall sockets that enable automated home energy management [2][3]. Schneider Electric plans to fold these connected devices into its existing EcoStruxure IoT platform, which currently manages operations across approximately 480,000 commercial, healthcare, and retail sites worldwide [3]. This integration is aimed at addressing the accelerating demand for smart energy efficiency and automated building controls, particularly within Western Europe, which accounts for 17.7% of Schneider’s global net sales, compared to 34.4% in the United States and 11.5% in China [6].

Regulatory Conditions and Next Steps

Despite the mutual agreement between the boards, several critical milestones must be achieved before the transaction can be finalised. The launch of the tender offer is subject to securing regulatory clearances and is contingent on Schneider Electric acquiring at least 95% of Shelly Group’s outstanding share capital [5][7]. Additionally, as of 24 September 2026, no formal offer has been registered with the Bulgarian Financial Supervision Commission, which retains the authority to review, suspend, or block the bid [5]. If all regulatory approvals and acceptance thresholds are successfully met, Schneider Electric expects the transaction to officially close by the first quarter of 2027 [1].

Sources & Ecosystem Partners

Acquisition Smart home