French energy firm Schneider Electric has announced a $22.6 billion all-cash acquisition of US-based software company PTC to expand its industrial AI and lifecycle management capabilities.
Key facts
- •Schneider Electric will pay $205 per share in cash for 100% of PTC's equity.
- •The deal is valued at $23.7 billion when including PTC's debt.
- •PTC, founded in 1985, employs more than 7,000 people and serves over 30,000 customers.
- •Schneider Electric expects to realize €250 million in annual cost savings by the third year.
- •The acquisition follows Schneider's June 2024 purchase of data operations vendor Cognite for $3.1 billion.
Schneider Electric has confirmed an agreement to acquire the American industrial software firm PTC in a deal valued at $22.6 billion. The transaction, which is the largest in Schneider Electric's history, involves a cash offer of $205 per share. The acquisition aims to integrate PTC’s industrial design and product lifecycle management software with Schneider’s existing energy and industrial technology portfolio.
By the numbers
Strategic Rationale and Market Context
Schneider Electric intends to use the acquisition to bridge physical and digital infrastructure, particularly in the context of rising datacenter power and cooling demands. By combining PTC’s software with its own hardware, Schneider aims to offer customers tools to design, manufacture, and maintain products more efficiently. The company expects the merger to create a scaled, interoperable industrial software and AI franchise. This move follows a series of strategic investments by Schneider Electric, including the $3.1 billion acquisition of industrial data firm Cognite in June and an $850 million investment for a 75% stake in cooling technology provider Motivair in late 2024. These acquisitions are designed to address the increasing complexity of datacenter deployments, which now require denser power delivery and advanced thermal management systems.
Financial Details and Market Impact
The $22.6 billion equity valuation represents a 42.3% premium over PTC’s last closing share price. Including debt, the total value of the transaction is $23.7 billion. Schneider Electric plans to fund the purchase by issuing up to €17 billion in debt and up to €6 billion in new shares. The company anticipates achieving annual cost savings of €250 million by the third year following the deal's completion. Following the announcement, Schneider Electric’s shares experienced a decline. Analysts at Jefferies noted that while the deal allows Schneider to acquire PTC at a decade-low valuation—partly due to market fears regarding AI disruption of software business models—the acquisition could continue to weigh on Schneider’s share price in the near term.
Timeline
- 1985PTC was founded to develop computer-aided design and lifecycle management software.
- Late 2024Schneider Electric acquired a 75 percent stake in cooling technology firm Motivair.
- June 2025Schneider Electric purchased industrial data operations vendor Cognite for $3.1 billion.
- MondaySchneider Electric announced the all-cash acquisition of PTC.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business, The Register.
