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Schneider Electric to buy US software firm PTC in $22.6 billion deal
- •France's Schneider Electric agreed to acquire US software company PTC for approximately $22.6 billion in its largest deal ever to expand its data centre and AI business.
- •Schneider shares fell nearly 10% in early Paris trading as investors expressed concern over the size of the acquisition, the premium offered, and software valuations.
- •The deal will add Boston-based PTC's product-design and lifecycle-management software to Schneider's offerings, boosting its software-as-a-service revenue.
- •The transaction values PTC at $205 per share, representing a 42.3% premium, and will be financed through €5 billion to €6 billion in new shares and €16 billion to €17 billion in new debt.
- •The acquisition is expected to close by the third quarter of 2027, pending shareholder and regulatory approvals, and aims to generate €250 million in annual cost savings by the third year.
Key Questions Answered
Schneider Electric has agreed to buy the US software company PTC for approximately $22.6 billion in its largest deal ever, offering $205 per share which represents a 42.3% premium to its last closing price. The transaction is set to be financed through the issuance of €5 billion to €6 billion in new shares and €16 billion to €17 billion in new debt.
Following the announcement, Schneider Electric's shares dropped nearly 10% in early Paris trading, erasing close to €15 billion from its market capitalisation as investors expressed caution over the acquisition size and software valuations. Conversely, PTC shares surged 34.4% in US premarket trading.
The acquisition expands Schneider Electric's industrial software and AI offerings by integrating PTC's product-design and lifecycle-management software, bolstering its role in the data centre build-up. According to CEO Olivier Blum, this engineering and design data will improve Schneider's capacity to deploy AI across industrial operations and lift its software-as-a-service revenue to about 24% of the group total.
