Schneider Electric to acquire American PTC for $22.6 billion

French company Schneider Electric will acquire American software company PTC for approximately $22.6 billion. This will be the largest acquisition in Schneider's history.

Companies use PTC's software in product design, manufacturing, and technical service processes. By acquiring PTC, Schneider aims to grow its software business. After the deal closes, software products and services will account for roughly a quarter of the group's revenue.

Schneider will pay $205 per PTC share, which is 42.3% higher than the company's latest trading price. To finance the deal, Schneider will issue new shares worth €5-6 billion and raise an additional €16-17 billion in debt.

The company expects the deal to reduce annual costs by approximately €250 million starting from the third year. Offering PTC's and Schneider's products together is expected to boost revenue by an additional approximately €800 million.

The deal requires approval from PTC's shareholders and regulators. It is expected to close in the third quarter of 2027.

Source: Reuters