Schneider Electric is preparing a $1.4 billion acquisition bid for Shelly Group, the smart-device maker. The move would merge Schneider’s technology portfolio across residential, retrofit, and small commercial buildings with Shelly’s software-led home energy platform. The combination aims to create a more integrated offering for energy management and smart building solutions.

Schneider, a global leader in energy management and automation, sees Shelly’s software capabilities as a strategic complement to its hardware and systems expertise. Shelly, known for its Wi-Fi and Bluetooth-enabled smart switches and sensors, has built a loyal user base across Europe and beyond. The deal, if completed, would mark one of Schneider’s largest recent acquisitions and signal a growing focus on software-driven energy solutions.

Industry analysts suggest the acquisition could accelerate the adoption of smart home technologies in existing buildings, where retrofitting is often more cost-effective than new construction. Schneider declined to comment on the bid, while Shelly did not immediately respond to requests for comment. The transaction is expected to close in the coming months, subject to regulatory approvals.