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Schneider Electric has agreed to acquire US-based industrial software company PTC for about $22.6 billion in an all-cash deal, expanding the
French energy technology company’s industrial software business.
Under the agreement, Schneider Electric will pay $205 per PTC share, representing a premium of about 42.3% to PTC’s closing price on October 2. The transaction values PTC at an enterprise value of about $23.7 billion.
PTC develops software used by manufacturers for product design, engineering, production and lifecycle management. Schneider Electric said the acquisition will strengthen its industrial software portfolio and support its strategy focused on energy and industrial intelligence.
Following the acquisition, software-as-a-service revenue is expected to account for about 24% of Schneider Electric’s total revenue.
Schneider Electric plans to finance the transaction through a combination of new share issuance and debt. The company expects to raise €5 billion to €6 billion through new shares and €16 billion to €17 billion through new debt.
The company expects the combined business to generate approximately €250 million in annual run-rate cost savings and approximately €800 million in revenue synergies by the third year after the transaction closes.
The acquisition remains subject to regulatory approvals and approval from PTC shareholders. Schneider Electric expects the transaction to close by the third quarter of 2027.
The deal would mark Schneider Electric’s largest acquisition and comes as manufacturers increasingly adopt industrial software and AI-driven technologies. It would bring PTC’s software capabilities together with Schneider Electric’s existing electrification, automation and digital businesses.
Schneider Electric shares fell following the announcement as investors assessed the size and financing of the transaction, while PTC shares gained on expectations of the acquisition.
Under the agreement, Schneider Electric will pay $205 per PTC share, representing a premium of about 42.3% to PTC’s closing price on October 2. The transaction values PTC at an enterprise value of about $23.7 billion.
PTC develops software used by manufacturers for product design, engineering, production and lifecycle management. Schneider Electric said the acquisition will strengthen its industrial software portfolio and support its strategy focused on energy and industrial intelligence.
Following the acquisition, software-as-a-service revenue is expected to account for about 24% of Schneider Electric’s total revenue.
Schneider Electric plans to finance the transaction through a combination of new share issuance and debt. The company expects to raise €5 billion to €6 billion through new shares and €16 billion to €17 billion through new debt.
The company expects the combined business to generate approximately €250 million in annual run-rate cost savings and approximately €800 million in revenue synergies by the third year after the transaction closes.
The acquisition remains subject to regulatory approvals and approval from PTC shareholders. Schneider Electric expects the transaction to close by the third quarter of 2027.
The deal would mark Schneider Electric’s largest acquisition and comes as manufacturers increasingly adopt industrial software and AI-driven technologies. It would bring PTC’s software capabilities together with Schneider Electric’s existing electrification, automation and digital businesses.
Schneider Electric shares fell following the announcement as investors assessed the size and financing of the transaction, while PTC shares gained on expectations of the acquisition.
