Schneider to Acquire Software Firm PTC in $22.6B Deal

France’s Schneider Electric is set to make its biggest deal this Monday, buying PTC equity for around $22.6 billion. The $205 per share offer implies an enterprise value of $ 23.7 billion for Boston-based PTC and represents a 42.3% premium to its last closing price.

The French engineering company’s shares were down 4.7% on Tradegate at the open. Investors worried about the size of the acquisition and Schneider paying a substantial premium for a software business facing AI-driven valuation pressure and uncertain growth prospects. 

Analysts at J.P. Morgan said in a note to investors that “Large-scale M&A is typically unwelcome in the first instance by European investors, although Schneider Electric’s deals ​have typically proven strategically astute, if debatable from a valuation standpoint.”

This transaction is the largest-ever acquisition in Schneider’s History, France’s third-highest-valued listed company by market capitalisation, according to LSEG data.

Schneider remarked that the acquisition would create a scaled industrial software and AI business built around open & interoperable systems, which it expects to generate €250 million in annual run-rate cost savings by the third year after closing, alongside about €800 million in expected revenue. 

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This deal continues the company’s push into software acquisition, following its agreement to buy Cognite Holdings, a privately held provider of AI software & industrial data, in June. It will be financed through a mix of equity and new debt and is expected to close in the third quarter of 2027.

PTC provides software solutions for designing, manufacturing and servicing products across multiple sectors and has also benefited from growing demand for its AI-powered tools.