Schneider Electric has agreed to buy US industrial software company PTC in a cash deal valuing its shares at approximately $22.6 billion. The companies announced the agreement on Monday, 5 October. The acquisition has been signed but has not been completed.
Under the companies’ announcement, Schneider will pay $205 for each PTC share. The offer is 42.3% above PTC’s last closing share price. Including debt, the announcement puts PTC’s enterprise value at $23.7 billion.
Why Schneider wants PTC
PTC makes software used to design complex products and manage information about them throughout their working lives, from design and manufacture to maintenance. Schneider supplies electrical and automation technology and has been expanding its industrial software business.
Schneider says combining PTC’s design and engineering data with its existing operational and energy data could help customers connect different stages of production and make wider use of artificial intelligence. That is the companies’ case for the purchase; the proposed benefits have yet to be delivered.
The announcement also forecasts €250 million in annual cost savings by the third year after completion and approximately €800 million in additional revenue from combining the businesses. Those figures are company projections, not savings or sales already achieved.
Approvals still needed
Both companies’ boards have approved the agreement. PTC shareholders must still vote in favour, and regulators must clear the transaction. Schneider expects it to close by the third quarter of 2027.
The company says it plans to fund the cash payment through a combination of new shares and debt. Until the required approvals are obtained and the transaction closes, PTC remains a separate company.
Investors weigh the price.
Schneider’s shares fell nearly 10% in early Paris trading as investors assessed the purchase price and uncertainty around software valuations, according to Reuters. PTC shares rose sharply in US trading before the market opened.
The deal would be Schneider’s largest acquisition, Reuters reported. Its commercial test will come later: whether the companies can combine their products effectively and deliver the growth and savings Schneider has forecast.
