Schneider Electric agreed to acquire PTC in an all-cash deal of about $22.6 billion, its largest acquisition, aimed at industrial software and data-centre demand. The offer is $205 a share.
France's Schneider Electric agreed on Monday to buy US industrial software company PTC for about $22.6 billion in cash, Reuters reported, calling it Schneider's largest deal. The company is building its data-centre business as demand for power and industrial software rises.
The $205-a-share offer implies an enterprise value of $23.7 billion and a 42.3 percent premium to PTC's previous close, Reuters said. Financing is planned through €5 billion to €6 billion of new shares under an existing shareholder authorisation and €16 billion to €17 billion of new debt.
Chief executive Olivier Blum said PTC's data assets would strengthen Schneider's industrial AI offering. Reuters said the deal is expected to lift recurring software revenue to about 24 percent of group sales, with €250 million of annual run-rate cost savings by the third year after closing and about €800 million of revenue synergies.
Schneider shares fell nearly 10 percent on concerns about AI disruption, Reuters reported, even as PTC became the top gainer on the S&P 500 during Monday's session, rising about 34.6 percent in a separate Reuters market report. The Register said the transaction is not expected to close until late next year and still faces regulatory review.
PTC, founded in 1985, is known for computer-aided design and product-lifecycle software. Schneider already bought industrial data firm Cognite for $3.1 billion in June, The Register noted, so the PTC bid extends a software push rather than starting one.
People Sentiments Mixed
- Investors sold Schneider shares on AI-disruption and deal-size concerns, Reuters reported.
- PTC shareholders saw the stock surge after the agreed bid.