Schneider Electric of France Confirms Acquisition of U.S. Software Company PTC for $22.6 Billion

en.Wedoany.com Reported - On October 5, Schneider Electric of France and U.S. industrial software company PTC signed a definitive acquisition agreement, under which Schneider Electric will acquire all of PTC's equity for $205 per share in cash, corresponding to an equity value of approximately $22.6 billion and an enterprise value of approximately $23.7 billion. The acquisition price represents a 42.3% premium over PTC's closing price on the last trading day before the transaction was announced, and a 46.1% premium over the volume-weighted average price for the preceding 30 trading days.

The transaction has been unanimously approved by the boards of directors of both Schneider Electric and PTC and is expected to close in the third quarter of 2027. Completion remains subject to approval by PTC's special shareholders' meeting, approval from relevant regulatory authorities, and satisfaction of other customary closing conditions. Under the terms of the agreement, the shareholder approval threshold for PTC is at least a majority of the issued shares.

Schneider Electric has obtained fully committed bridge financing from Morgan Stanley and Societe Generale to fund the cash required for the acquisition. The company plans to raise the final funding through approximately €5 billion to €6 billion in equity financing and approximately €16 billion to €17 billion in new debt, with the equity portion intended to be implemented through an accelerated bookbuild and the new debt to be issued in multiple currencies.

PTC primarily provides computer-aided design, product lifecycle management, application lifecycle management, and service lifecycle management software, serving mainly discrete manufacturing and hybrid manufacturing enterprises. The company generated revenue of approximately €2.4 billion in 2025, with an adjusted EBITA margin of approximately 40%. Schneider Electric expects PTC's revenue and annual recurring revenue to grow at an average annual rate of approximately 10% through 2029.

According to Schneider Electric's disclosed transaction estimates, approximately €250 million in annual cost synergies are expected to be achieved by the third year after completion, along with approximately €800 million in revenue synergies. The transaction is expected to be low-single-digit accretive to Schneider Electric's adjusted earnings per share in the first full year of PTC consolidation, with accretion expected to reach mid-to-high single digits once all synergies are realized. Including all synergies, the transaction's return on capital is expected to exceed Schneider Electric's weighted average cost of capital by the fifth year after closing.