Schneider Electric to buy PTC for $22.6 billion in cash

Schneider Electric said Monday it has agreed to buy U.S. engineering software maker PTC ↗ 34.01% for $205 a share in cash. The offer values PTC's equity at about $22.6 billion and confirms reports from Sunday that the two companies were close to a deal. The price is a 42.3% premium to PTC's last close and implies an enterprise value of $23.7 billion for the Boston-based company. Bloomberg describes it as the largest acquisition in Schneider's history.reuters+2

The Financial Times first reported on Sunday that talks were in their final stages. Bloomberg followed with a report that the deal was worth more than $20 billion and could be announced as early as Monday morning. PTC's board has approved the transaction and will recommend it to shareholders. Schneider expects the deal to close by the third quarter of 2027, pending regulatory approval.tradingview+2

Investors split on the price

Schneider shares fell more than 7% in Paris on Monday, according to Investing.com. PTC shares jumped more than 34% in premarket trading. Jefferies analysts said worries about AI disrupting software companies let Schneider buy PTC "at a decade-low valuation." They added that those same worries "could still weigh on [Schneider] post deal". PTC's stock had fallen about 30% over the past year before the announcement.bloomberg+3

Schneider expects 250 million euros in annual cost savings by the third year and about 800 million euros in additional revenue from combining the businesses. It says the deal will add slightly to adjusted earnings per share in the first full year. The company plans to pay with up to 6 billion euros in new shares and as much as 17 billion euros in new debt. A bridge loan from Morgan Stanley ↘ 0.16% and Société Générale backs the financing.investing+2

Building a software business

PTC makes software that manufacturers use to design products, manage engineering data and track products over their lifetime. Schneider is best known for electrical equipment that has sold strongly during the AI data-center boom. It says PTC will join its existing software business, including AVEVA, and Cognite, the industrial AI firm it agreed to buy in June. Last month Schneider also agreed to buy smart-device maker Shelly Group for about 1.2 billion euros.reuters+2

Autodesk ↗ 5.27% considered a bid for PTC in July 2025 but dropped the idea, Bloomberg reported. Simply Wall St said the takeover has also turned investor attention to other industrial software and automation stocks, because the price could change how the market values design and factory software.simplywall+1

Schneider CEO Olivier Blum said the deal will create "the industry's most complete software and AI powerhouse". PTC CEO Neil Barua called it "an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally". Schneider is due to report third-quarter results on October 16.tradingview+1