Schneider Electric shares plunge on record $22.6bn PTC deal
French energy technology group Schneider Electric has signed a definitive agreement to acquire Boston-based PTC for $22.6bn (€20.1bn) to expand its industrial AI business. The French company's shares plummeted on Monday following the announcement.
Schneider Electric, a leading European company, announced it would acquire US industrial design software firm PTC in a record $22.6bn deal. The French energy technology group plans to use the acquisition to bolster its industrial AI capabilities by leveraging product and engineering data. Schneider agreed to pay $205 per share for 100% of PTC's shares in cash, valuing the company's equity at $22.6bn and including debt at $23.7bn.
The deal creates a leading, open and interoperable industrial software and AI franchise, according to Schneider. CEO Olivier Blum stated the acquisition would help customers design, manufacture, operate and maintain products more efficiently using industrial data. PTC's CEO Neil Barua said the acquisition grants substantial scale and resources to accelerate innovation and expand the company's reach in geographies and end markets.
The transaction, expected to close by Q3 2027, will be funded through up to €17bn in debt and up to €6bn in new shares. Schneider expects to issue €250m in annual cost savings and €800m in additional revenue by the third year post-acquisition. However, analysts warn the deal could weigh on Schneider's shares in the long run due to AI-driven disruption in software valuations.
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