Schneider Electric agrees to acquire PTC for $22.6 billion

Schneider Electric agrees to acquire PTC for $22.6 billion

Schneider Electric has agreed to acquire enterprise software company PTC for $22.6 billion.

Nasdaq-listed PTC provides enterprise software for product lifecycle management, computer-aided design, and application lifecycle management.

The transaction is valued at $205 per share, equivalent to 13 times earnings. Schneider Electric’s share price fell by nearly 10 percent following the announcement, while PTC’s premarket share price increased by nearly 36 percent.

Schneider Electric said the acquisition will create a "leading, scaled, open, and interoperable industrial software and AI franchise," supported by recurring revenue and aligned with its "digital flywheel" ambition.

Olivier Blum, CEO of Schneider Electric, said the transaction advances the company’s ambition to lead what it describes as a new era of energy and industrial intelligence. He said the combined business would connect and contextualize data across the lifecycle of products and assets, from design and construction through operation and maintenance, to support Industrial AI applications.

The acquisition is Schneider Electric’s largest transaction to date. Earlier this year, the company announced an agreement to acquire industrial AI company Cognite for $3.1 billion.

Neil Barua, president and CEO of PTC, said joining Schneider Electric would provide greater scale and resources to accelerate innovation, advance PTC’s Intelligent Product Lifecycle vision, and expand its operations into additional geographies and end markets.

Financing and expected completion

The total cash consideration will be supported by a fully committed bridge facility provided by Morgan Stanley and Société Générale. Schneider Electric expects to fund the transaction through a combination of approximately €5-6 billion ($5.6-7.1 billion) in equity issuance and approximately €16-17 billion ($17.9-19 billion) in new debt issuance.

The transaction is expected to close by the third quarter of 2027.