Schneider Electric Agrees to Acquire PTC for $22.6 Billion

French energy technology group Schneider Electric announced the acquisition of US industrial software developer PTC. The deal will be worth $22.6 billion ($205 per share in cash), valuing the business at $23.7 billion including debt. The acquisition will be the largest in the French corporation’s history and is aimed at significantly expanding its capabilities in industrial artificial intelligence. The proposed price includes a 42.3% premium over PTC’s latest closing share price.

Combining the companies’ assets will allow Schneider Electric to create a comprehensive software and AI ecosystem that connects physical processes with digital data. Schneider Electric CEO Olivier Blum emphasized that the move will strengthen the company’s position as a leader in the era of industrial intelligence, helping customers optimize product design, manufacturing and maintenance. PTC CEO Neil Barua, in turn, noted that the deal will give the company the resources to accelerate innovation and expand its global presence. Boston-based PTC employs more than 7,000 people and serves over 30,000 customers.

The deal comes amid market concerns that the development of AI could undermine the value of software companies’ traditional business models due to the emergence of cheaper alternatives. Jefferies analysts say these risks have pushed PTC’s multiple to a decade low of 13.1 times projected earnings, allowing Schneider to make the acquisition at an attractive valuation. Nevertheless, investors reacted cautiously to the news: Schneider Electric shares fell more than 9% on Monday following the announcement.

To finance the acquisition, the French group plans to raise up to €17 billion in debt and issue up to €6 billion in new shares. Schneider expects synergies: by the third year after the merger, annual cost savings should reach €250 million, while additional revenue should total about €800 million. To facilitate the deal, the company will temporarily suspend share repurchases in 2027–2028, but has committed to completing its current €2.5–€3.5 billion buyback program by the end of 2030. The acquisition has already been approved by PTC’s board of directors, and final closing is expected by the third quarter of 2027 after all regulatory procedures and a shareholder vote have been completed.