Why This Matters to Distributors: Manufacturers are investing heavily in artificial intelligence to improve plant operations, maintenance, and asset performance. The acquisition strengthens Schneider Electric’s industrial software business and reflects growing demand for AI platforms that help manufacturers operate more efficiently. That trend is expected to increase investment in factory automation, industrial software and digital infrastructure served by distributors.
Schneider Electric has agreed to acquire industrial artificial intelligence software provider Cognite in an all-cash transaction valued at $3.1 billion, expanding its industrial software portfolio as manufacturers accelerate investments in AI and digital operations.
The transaction is subject to customary closing conditions, including regulatory approvals. Financial terms beyond the purchase price were not disclosed.
The acquisition will combine Cognite’s industrial data and AI platform with AVEVA, Schneider Electric’s industrial software business. Schneider Electric said the combination will expand AVEVA’s CONNECT industrial intelligence platform by adding software that organizes operational, engineering and enterprise data to support AI-driven applications.
Founded in 2017, Cognite develops cloud-native software that helps industrial companies collect, contextualize, and analyze operational data from manufacturing facilities and other asset-intensive operations. The platform is used to support predictive maintenance, engineering workflows, asset management, and operational decision-making.
Upon closing, Cognite will become part of AVEVA and will be reported within Schneider Electric’s Industrial Automation business.
“Cognite has built a truly industrial-grade AI platform that turns the complexity of operational data into a competitive advantage,” says Schneider Electric CEO Olivier Blum.
Cognite employs more than 800 people across the Americas, Europe, the Middle East, and Asia-Pacific.
The company said it generated more than $170 million in annual revenue in 2025. It also reported a 36% increase in annual recurring revenue bookings during the year, driven in part by adoption of its Atlas AI platform.
The acquisition expands Schneider Electric’s presence in the fast-growing industrial AI software market, where manufacturers are increasingly adopting AI to improve equipment reliability, optimize production and reduce operating costs.
The combined platform is designed to help industrial companies integrate engineering, operational and enterprise data while supporting AI applications across the asset lifecycle.
Schneider Electric said the transaction is expected to close in the coming quarters following regulatory review.
The acquisition is the latest example of industrial technology companies investing in AI software as demand grows for digital tools that improve manufacturing efficiency and automate complex industrial processes. For distributors serving industrial, manufacturing, energy and infrastructure customers, the trend points to continued investment in automation software, connected equipment and digital technologies.
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