Schneider Electric Bids €1.2 Billion for Smart Home Specialist Shelly
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The smart relay tucked behind your light switch is getting a new owner: French energy technology group Schneider Electric wants to take over Bulgaria’s Shelly Group in full, valuing the company at around €1.2 billion. The two founders, who together hold 56.6 percent of the capital, support the transaction.
Schneider Electric has just announced a voluntary public takeover offer for all outstanding Shelly shares, to be paid entirely in cash. The offer is conditional on acquiring at least 95 percent of the capital and still needs to be reviewed by Bulgaria’s Financial Supervision Commission (FSC) and cleared by competition authorities. The deal is expected to close by the first quarter of 2027.
€70 per Share and a 27 Percent Premium
Schneider Electric is offering €70 per Shelly share. That is a premium of 27 percent over the so-called unaffected reference price of €55.20. Under Bulgarian takeover law, this figure is the six-month volume-weighted average share price, calculated up to the day before market rumors about the deal first surfaced at the end of July. Measured against the current reference price of €57.50, the premium comes to 22 percent.
The bar for success is set high: The offer only goes through if Schneider Electric ends up controlling more than 95 percent of the share capital. If that threshold is reached, the group plans to squeeze out the remaining shareholders and delist Shelly. The stock is currently traded in Sofia and on Frankfurt’s Xetra platform.
Founders Cash Out, One Stays Invested
Shelly was founded by Dimitar Dimitrov and Svetlin Todorov. Dimitrov holds around 29 percent and intends to tender his shares in the offer. He will, however, reinvest part of the proceeds alongside Schneider Electric for at least three years, keeping a financial stake in the company.
Todorov’s stake of around 28 percent, held partly in his own name and partly through his company Salisto Holdings, will be bought directly by Schneider Electric. This happens in two steps: The group first acquires a non-controlling minority block of 5 percent, followed by the remaining 23 percent or so once merger clearance has been granted. If the takeover offer fails, both transactions will be cancelled.
Shelly’s board of directors has also welcomed the move. Its preliminary view is that an offer at this price is in the interest of the company, its shareholders, employees and other stakeholders. For all shareholders, the board says, it offers a one-time opportunity to turn their holdings into cash at a fixed price.
Why Schneider Electric Wants Shelly
Shelly is best known for small Wi-Fi and Bluetooth relays and sensors that can be retrofitted behind existing switches and sockets. The company, formerly known as Allterco, had already become the favorite home automation brand in Germany and Italy years ago. Today, Shelly increasingly positions itself as a software-led platform for home energy management.
That is exactly what Schneider Electric is after. The group, which employs around 160,000 people worldwide, wants to combine Shelly’s platform with its own portfolio for residential buildings, retrofit projects and small commercial properties. Frederic Godemel, Executive Vice President of Energy Management at Schneider Electric, speaks of unlocking “the next level of Energy Intelligence.” According to Godemel, Shelly brings differentiated capabilities in connectivity at scale, interoperability and home energy management, strengthening Schneider’s ability to combine the physical and digital worlds in homes and small buildings.
Strategically, the acquisition targets a market that is growing more complex fast, driven by rooftop solar, heat pumps, home batteries and electric cars. Whoever controls the flow of electricity inside the home holds a key position in the energy transition. The retrofit market is particularly attractive here, since Shelly devices can be installed into existing wiring without major renovation work.
Crowded Smart Home Market
Schneider Electric is not the only player shopping in this space. Rival Legrand acquired smart home specialist Netatmo years ago, and ABB, Siemens and Bosch, with its own smart home system, are also active in the segment. In the German-speaking market, Shelly competes with brands such as eQ-3’s Homematic IP, AVM’s Fritz smart home products and Munich-based heating specialist tado. Schneider already sells its own smart home solutions under the Wiser brand; Shelly would add significantly greater reach in the retrofit segment.
Next Steps
Formally, the offer will be launched by Schneider subsidiary SE 2026 A. The FSC will first review the filing, after which the offer document with the full terms and conditions will be published and the acceptance period for shareholders will begin. Competition clearances and other customary regulatory approvals are also required.
Deutsche Bank is acting as Schneider Electric’s sole financial advisor, while UniCredit Bulbank serves as the authorized investment intermediary in Bulgaria. Law firms Boyanov & Co. and Bredin Prat are advising the group on legal matters.
