Schneider Electric to Buy US Software Maker PTC for $22.6 Billion in Cash
Schneider Electric has agreed to acquire PTC, a U.S. maker of industrial design and engineering software, for approximately $22.6 billion (€20.1 billion) in cash. The French group announced the deal on Monday morning.
The announcement followed a Financial Times report suggesting that the two companies were close to an agreement valued at around $20 billion.
Under the final terms, Schneider will pay $205 for each PTC share, representing a 42.3% premium to PTC's Friday closing price of $144.03. Including debt, the deal values PTC at about $23.7 billion. This is Schneider's largest acquisition to date, according to Bloomberg.
PTC, headquartered in Boston, develops software that helps manufacturers design, build, and service their products. They serve over 30,000 customers worldwide.
"The acquisition of PTC represents an important step forward in our ambition to lead the new era of Energy and Industrial Intelligence," said Olivier Blum, Schneider's CEO.
PTC's board has approved the deal, and they plan to recommend it to shareholders. Completion is expected by the third quarter of 2027, pending regulatory approval and shareholder approval at PTC.
Schneider expects significant savings from the acquisition, estimating about €250 million per year by the third year after closing.
This purchase builds on Schneider's recent software acquisitions, including Cognite, an industrial AI firm acquired for $3.1 billion in June, and Shelly Group, a Bulgarian smart-home device maker for €1.2 billion last month.
Due to this deal, Schneider will release its third-quarter revenue report on October 16, earlier than planned.