APC merger joins rivals, leaves product questions

02.11.2006
The planned merger of American Power Conversion Corp., and French-based Schneider Electric SA -- -- would combine two companies that have been competitors for data center backup power business. But it would also leave in its wake uncertainty about the companies' future product line directions.

The merger isn't expect to close until early next year.

Schneider plans to acquire West Kingston, R.I.-based APC for US$6.1 billion. The two firms, through Schneider subsidiary MGE UPS Systems, have competed in the uninterruptible power supply (UPS) market. APC makes a number of other data center products, such as cooling systems.

It's too soon to say whether customers of either firm can expect product line consolidations as a result of the merger, according to Aaron Davis, APC's vice president of marketing and communications. "One of the goals of the merger is to bring two companies together whose resources and expertise will enable them to be focused on delivering comprehensive customer solutions in critical power and energy management."

Davis said APC is also reaching out to its customers, telling them that it will continue to be well suited to meet their needs and that "one of our priorities is to make our transition to new ownership smooth and seamless for them."

One APC user, Seth Mitchell, infrastructure team leader at Slumberland Inc. in Little Canada, Minn., uses APC products and has experience with MGE's offerings. He said the merger will be a difficult fit.