France-based Schneider Electric has entered into an agreement to acquire Spanish software firm Telvent GIT to reinforce its solution capability for the smart grid and mission-critical infrastructure.

The company will launch an offer to acquire all Telvent shares at $40 per share and the transaction is expected to be closed in the third quarter of this year.

In connection with the transaction, Spain-based Abengoa has irrevocably agreed to tender its 40% stake in Telvent to Schneider Electric in the offer.

The transactions are subject to approvals of European and US competition authorities and other material conditions.