Schneider Electric has agreed to buy US software group PTC for $205 per share in cash. The deal values PTC's equity at $22.6bn and its enterprise value at $23.7bn.
Schneider Electric has agreed to acquire US engineering software provider PTC in an all-cash transaction. The French conglomerate will pay $205 per share, valuing PTC’s equity at approximately $22.6bn. When including PTC’s assumed debt, the implied enterprise value of the deal is $23.7bn.
The offer represents a 42.3% premium to PTC’s last closing price of $144.03. Schneider Electric stated that the transaction is expected to close by the third quarter of 2027, subject to customary closing conditions, including regulatory approvals and a shareholder vote.
To fund the acquisition, Schneider Electric announced a financing plan involving a bridge loan from Morgan Stanley and Société Générale. Permanent funding will consist of €5-6bn in new shares and €16-17bn in new debt. The company also stated that share buybacks will be paused in 2027 and 2028.
According to Schneider, PTC’s 2025 revenue was about €2.4bn with an adjusted EBITA margin near 40%. The company expects PTC to achieve about 10% annual growth through 2029.
Schneider Electric describes the acquisition as a step to create a "leading, scaled, open and interoperable industrial software and AI franchise." The company aims to bridge the "physical and digital worlds across the lifecycle" of products and assets.
Olivier Blum, Schneider Electric CEO, said: "The acquisition of PTC represents an important step forward in our ambition to lead the new era of energy and industrial intelligence."
Blum added: "By connecting and contextualising data across the lifecycle of products and assets, we will create a unique digital thread for the next generation of industrial AI, helping customers to optimise their systems with greater intelligence from design and build to operate and maintain."
Neil Barua, president and CEO of PTC, said: "PTC provides the software the world’s leading manufacturers and product companies rely on to design, build and maintain great products and unlock more value from their product data in an increasingly AI-driven world."
Barua continued: "Joining Schneider Electric is an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally."
Following the announcement, Schneider Electric’s shares fell sharply in Paris. The stock traded at 279 euros by about 8.17am, down from 303 euros on Friday, representing a drop of about 8%. PTC’s share price had already risen significantly prior to the official confirmation, closing at $192.61 on the day before the final terms were announced, up 33.28% on that session.
This acquisition follows Schneider Electric’s agreement in July to acquire industrial data and AI software company Cognite in an all-cash transaction worth $3.1bn. The company also holds a stake in AVEVA. The combination of these assets is intended to lift software and services to about 24% of Schneider Electric’s group revenue.
The deal marks Schneider Electric’s largest takeover to date and signals a significant shift in the industrial sector toward integrating AI and software with physical manufacturing. By acquiring PTC, Schneider Electric aims to consolidate its position in the industrial software market, competing with other major technology firms that are increasingly targeting the manufacturing sector. The transaction highlights the growing importance of digital threads and data interoperability in modern industrial operations.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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