PARIS: French industrial technology company Schneider Electric SE is nearing an agreement to acquire Shelly Group SE, a maker of smart devices for the home, Bloomberg News reported Thursday, citing people familiar with the matter.

Schneider has been discussing an offer of about 70 euros ($79.65) a share, according to the report. That would value Bulgaria-based Shelly Group at about 1.27 billion euros, excluding debt.

Neither company had announced a final agreement, and the terms could change before a deal is signed.

Bloomberg first reported on July 29 that Schneider was in talks to buy Shelly, working with advisers on a deal at about 70 euros a share that would include stakes held by founding shareholders.

Shelly Group confirmed it entered preliminary discussions with Schneider on July 29 regarding a potential tender offer for the company’s shares.

Shelly’s shares rose about 10% to 64 euros after the initial reports, and the company competes with Sweden’s Plejd.

Bulgarian outlet Capital reported that the valuation would make the deal a record-large transaction for a Bulgarian technology company.

Shelly was founded in 2010 and is headquartered in Sofia. It develops and distributes Internet of Things and smart building products for both professional and do-it-yourself users, including automation, energy management and remote building control.

Analysts at Memoori said the deal would be a logical expansion of Schneider’s smart building and Internet of Things portfolio and would strengthen its presence in Europe.