**Schneider Electric’s Acquisition of Cognite: A Strategic Move for IT/OT Convergence and Industrial AI**
In a significant development for the industrial automation and digital transformation landscape, Schneider Electric has announced its agreement to acquire Cognite Holding B.V. in an all-cash transaction valued at US$3.1 billion. This strategic acquisition is designed to bolster Schneider Electric’s automation and energy management business by integrating Cognite’s advanced industrial data and artificial intelligence (AI) software capabilities.
The deal entails the acquisition of 100% of Cognite’s share capital. While the completion is subject to standard closing conditions, including obtaining necessary regulatory approvals, the acquisition is anticipated to close in the coming quarters. This move is set to enhance Schneider Electric’s portfolio by adding Cognite’s sophisticated industrial data platform, which specializes in connecting and managing data from diverse sources such as operational technology, enterprise IT systems, and AI applications.
**Driving IT/OT Convergence**
A key driver behind this acquisition is the growing convergence of Information Technology (IT) and Operational Technology (OT). Industrial data, as defined by NIST, originates from programmable systems and devices that interact with the physical environment, including industrial control, building automation, transportation, and physical access control systems. According to Cisco’s 2026 industrial AI research, 61% of companies are currently deploying AI, with 20% having already scaled it across their operations. However, the research also highlights a significant gap, with 57% of industrial organizations reporting only limited or no collaboration between their IT and OT teams.
**Cognite’s Industrial Data Platform**
Cognite, founded in 2017, has developed a cloud-native software platform focused on industrial data and AI. The platform is engineered to connect and contextualize operational, engineering, and enterprise data, enabling industrial companies to leverage this unified data for analytics, AI, asset management, and plant operations. Cognite’s technology addresses the challenge of industrial data being scattered across various systems and formats—ranging from sensor readings and engineering diagrams to maintenance records and 3D models—by creating relationships between these disparate data sets through its Cognite Data Fusion platform.
The integration of Cognite’s platform with Schneider Electric’s offerings combines a unified industrial data model with agentic AI capabilities. This allows customers to implement AI directly within their plant operations, asset management, and engineering workflows. Cognite’s tools, including its industrial knowledge graph and Atlas AI platform, support advanced data integration, modeling, and contextualization, facilitating connected operational information rather than isolated data sets.
**Integration with AVEVA**
Following the transaction, Cognite will be integrated with AVEVA, a company wholly owned by Schneider Electric. AVEVA provides industrial software solutions used across engineering, operations, and asset management. Its CONNECT platform is designed to unify industrial data, applications, and workflows across on-premises and cloud infrastructures. The acquisition is expected to expand AVEVA’s CONNECT industrial intelligence platform by incorporating Cognite’s data contextualization and AI capabilities, as noted by industry analysts at ARC Advisory Group.
**Market Context and Transaction Details**
The acquisition occurs in a rapidly growing industrial digital technology market, which IoT Analytics valued at US$176.9 billion in 2024, projecting an 11% compound annual growth rate over the next seven years. This growth is driven by AI-driven applications and advanced analytics, which are expanding at over 40% annually from a smaller base, compared to single-digit growth in core industrial hardware and established automation segments.
Cognite reported annual revenues exceeding US$170 million in 2025, with 36% growth in annual recurring revenue bookings, supported by the adoption of its Atlas AI platform. Olivier Blum, CEO of Schneider Electric, emphasized that Cognite has built an industrial-grade AI platform that transforms operational data into a business asset, strengthening Schneider Electric’s industrial software and AI capabilities. The acquisition is also expected to facilitate the combined use of data and AI across Schneider Electric’s extensive portfolio.
Upon completion, Cognite will be fully consolidated and financially reported within Schneider Electric’s Industrial Automation business unit. This acquisition marks a significant step in the ongoing integration of IT and OT, paving the way for more intelligent, connected, and efficient industrial operations.
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*Original Article Source:*
IoT Tech News – “Schneider Electric to acquire Cognite for $3.1bn to add industrial data and AI software capabilities”
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