France's Schneider Electric confirms $22.6 billion deal to buy US software firm PTC

French technology conglomerate Schneider Electric announced on Monday its acquisition of US software company PTC for 20 billion euros (22.6 billion dollars). The combined entity is expected to reduce annual costs by 250 million euros from the third year and generate 800 million euros in synergies for Schneider. The Financial Times and Bloomberg had previously reported on the pending deal.

With the agreed-upon purchase price, Schneider is paying a premium of 42 percent above Friday's closing price (144.03 dollars). Together, they will create the most comprehensive software and AI company in the industry, said Schneider CEO Olivier Blum in a statement. The transaction is expected to be finalized by the third quarter of 2027.

Schneider also anticipates presenting its Q2 results on October 16. Like rival Siemens, Schneider is heavily involved in automating industrial facilities and has been purchasing companies at the intersection of software and hardware for some time. Most recently, Schneider agreed to acquire Bulgarian SDax company Shelly Group for 1.2 billion euros. Shelly specializes in producing connected devices for home automation.