Schneider Electric to Buy Cognite in $3.1 Billion Push into Industrial AI

French energy management and automation giant Schneider Electric SE is expanding its industrial software business through the acquisition of Norwegian industrial AI company Cognite AS in a deal valued at approximately $3.1 billion.

The transaction strengthens Schneider Electric's position in the rapidly growing market for industrial artificial intelligence and digital operations software, as manufacturers increasingly seek to connect operational data with AI-driven insights to improve productivity, reliability, and sustainability. Rather than building those capabilities organically, Schneider is acquiring an established software platform with a strong presence across energy, manufacturing, mining, and other asset-intensive industries.

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Why the deal matters

The acquisition reflects a broader shift across the industrial technology sector, where hardware manufacturers are investing heavily in software and AI to create integrated digital platforms. As enterprises modernize factories, power grids, and critical infrastructure, software capable of analyzing operational data and automating decision-making has become a key competitive differentiator.

For Schneider Electric, Cognite adds an advanced industrial data and AI platform that complements its existing EcoStruxure ecosystem. The combination is expected to give customers greater visibility into industrial operations while enabling predictive maintenance, digital twin applications, asset optimization, and AI-powered automation.

The deal also supports Schneider's long-term strategy of expanding its recurring software revenue and strengthening its portfolio of digital services.

About Schneider Electric

Founded in 1836 and headquartered in Rueil-Malmaison, France, Schneider Electric has evolved from an electrical equipment manufacturer into one of the world's largest providers of energy management and industrial automation solutions. The company operates in more than 100 countries, serving customers across buildings, data centers, infrastructure, utilities, and manufacturing.

Over the past decade, Schneider has steadily transformed its business through investments in cloud software, industrial analytics, and automation technologies. The company has increasingly complemented internal product development with acquisitions aimed at expanding its digital capabilities, reflecting a broader industry shift toward software-defined industrial operations.

About Cognite

Founded in 2016 and headquartered in Lysaker, Norway, Cognite develops an industrial data operations and AI platform that helps organizations consolidate, contextualize, and analyze data from equipment, sensors, enterprise applications, and operational technology systems.

Its software enables customers to build digital twins, monitor industrial assets in real time, improve predictive maintenance, reduce unplanned downtime, and optimize production using artificial intelligence. The platform is used across sectors including oil and gas, renewable energy, manufacturing, mining, and utilities, where organizations manage complex industrial assets and large volumes of operational data.

Backed by Norwegian industrial investment company Aker ASA, Cognite has grown into one of Europe's leading industrial software companies, expanding its customer base across North America, Europe, Asia-Pacific, and the Middle East.

What to Expect From This Deal

Schneider Electric's acquisition of Cognite underscores the accelerating convergence of industrial automation, cloud computing, and artificial intelligence. As industrial companies seek unified platforms that can collect data, generate insights, and automate decisions, established technology vendors are increasingly turning to acquisitions to accelerate innovation and close product gaps.

For Cognite, the transaction provides access to Schneider Electric's global customer base and distribution network, significantly expanding the reach of its industrial AI platform. For Schneider, the acquisition strengthens its competitive position as industrial software becomes an increasingly important driver of growth and customer value.

The deal also highlights a broader M&A trend: strategic buyers are placing a premium on AI-native software companies that can help transform traditional industrial businesses into data-driven, intelligent enterprises. As digital transformation continues across critical infrastructure and manufacturing, acquisitions like Cognite are expected to play an increasingly important role in shaping the next generation of industrial technology platforms.