"The complementary capabilities of GE and Converteam will create a winning platform for success," said Pierre Bastid, president and CEO of Converteam, in a statement.
Under the deal, Converteam's senior management retains a 10% stake in the company, which GE will purchase within five years.
GE Energy has spent €11 billion in acquisitions in recent months in an effort to achieve synergies and strengthen its hold on core markets at the same time as expanding in growth areas such as Brazil, China and India.
"GE is thrilled by the growth opportunities that this acquisition brings. GE will heavily invest in new product developments to further expand our offerings in core segments such as metals and marine, while addressing increasing demand for high energy efficiency in oil and gas, thermal power generation and renewables," said John Krenicki, president and CEO of GE Energy.