Schneider Electric agreed on Oct 5 to acquire PTC for $205 per share in cash, valuing the US software company's equity at about $22.6bn and its enterprise at roughly $23.7bn. Both boards unanimously approved the transaction, which is expected to close in the third quarter of 2027.
Why Schneider Electric is buying PTC
Schneider wants to stitch PTC's CAD, product-lifecycle and service-lifecycle software onto its existing AVEVA industrial operations platform, creating what it calls a digital thread from product design through construction, operation and maintenance. Management argues that thread gives AI agents the context they need and roughly triples Schneider's addressable industrial-software market, especially in discrete and hybrid manufacturing.
PTC, which has more than 30,000 customers, booked about EUR2.4bn of revenue in 2025 at an adjusted EBITA margin near 40%, and Schneider expects revenue and ARR growth of around 10% a year through 2029. After the deal, software and services would make up about a quarter of group revenue. Schneider targets about EUR250m of annual cost synergies by year three and around EUR800m of revenue synergies.
“Together, we are creating the industry's most complete Software & AI powerhouse.”
Deal terms and financing
The $205 per-share price is a 42.3% premium to PTC's last close before the announcement and 46.1% above its 30-day volume-weighted average. The cash consideration is covered by a fully committed bridge loan from Morgan Stanley and Societe Generale, to be refinanced with roughly EUR5-6bn of new equity and EUR16-17bn of new debt. Schneider will complete EUR600m of buybacks in 2026 and then pause repurchases in 2027 and 2028, while aiming to keep its A credit rating.
Regulatory approvals and timing
Completion requires approval from PTC shareholders at a special meeting and regulatory clearances in multiple jurisdictions; PTC's board recommends the deal. The companies are guiding to a third-quarter 2027 close.
Market context
The deal lands as global M&A cooled in the third quarter on higher borrowing costs, yet strategic megadeals continue. It follows Schneider's full buyout of AVEVA and its pending $3.1bn Cognite deal, and comes just over a week after it agreed to buy smart-home device maker Shelly for about EUR1.2bn. Investors reacted coolly, with Schneider shares dropping by up to about 10% in Paris on the day.
