Sources: Schneider Electric is nearing a deal to acquire Bulgaria-based smart home device maker Shelly Group at a €1.27B valuation, excluding debt

The smart home device market gets a major consolidation player, potentially changing how smaller brands are acquired and integrated.

Schneider Electric SE is reportedly close to finalizing an acquisition of Shelly Group SE, a Bulgarian company specializing in smart home devices. The deal is expected to value Shelly Group at approximately €1.27 billion, not including any outstanding debt. This potential acquisition would see Schneider Electric, a global specialist in energy management and automation, integrate Shelly Group's product portfolio into its own offerings. Shelly Group is known for its range of Wi-Fi-enabled relays, sensors, and other smart home automation devices, which have seen significant adoption in recent years.

This move by Schneider Electric signals a significant consolidation trend within the smart home sector, indicating a desire among larger established players to quickly expand their market share and technological capabilities. By acquiring Shelly Group, Schneider Electric gains access to a diverse and well-regarded product line that can be swiftly integrated into their existing energy management and automation solutions, bypassing lengthy in-house development cycles.

The integration of Shelly's technology could lead to more comprehensive and competitive smart home ecosystems, potentially pressuring rivals to accelerate their own innovation or pursue similar M&A strategies. For consumers and installers, this might translate to more streamlined product compatibility and potentially more integrated smart home experiences offered by a single, larger entity.