France's Schneider Electric has confirmed its all-cash acquisition of US engineering software firm PTC for $22.6 billion, representing a 42.3% premium to PTC's most recent share price. The deal values PTC's equity at $22.6 billion and carries an enterprise value of $23.7 billion for the Boston-based company. PTC shares surged nearly 34% on Monday following the announcement, as the market reacted positively to the strategic acquisition. The acquisition will be financed through a combination of debt and new share issuance, with Schneider planning to take on up to €17 billion ($19 billion) in debt and issue up to €6 billion in new shares. However, Schneider's stock fell more than 8% in early Paris trading as investors weighed the significant funding requirements.
The completed PTC acquisition would strengthen Schneider's software portfolio, including tools that help manufacturers design industrial products and develop engineering specifications. PTC employs about 7,000 people, serves around 30,000 customers and generates nearly half its revenue from the Americas. The acquisition would be ranked among the largest cross-border transactions of 2026, with only 10 deals valued at over $10 billion struck globally in the three months through September. PTC's portfolio includes computer-aided design, product lifecycle management and industrial Internet of Things software, helping manufacturers manage products from design through production and service. PTC's product-design, PLM, and industrial-IoT portfolio (Creo, ThingWorx, Codebeamer, Onshape) would bolt onto Schneider's energy management and industrial automation stack, aligning with its push to pair software with hardware across data centers, factories, and infrastructure. As per Schneider, the acquisition "creates a leading, scaled, open and interoperable industrial software and AI franchise."
The completed deal comes months after Schneider signed a $3.1 billion deal to acquire Cognite, an industrial data and AI provider in June. In September, the France-headquartered company announced plans to pay $1.4 billion to acquire Shelly Group, a Bulgarian technology company that makes at-home smart devices. Schneider also recently announced the 1.2 billion-pound acquisition of Bulgarian smart-device maker Shelly Group. Schneider's chief executive Olivier Blum, who has been at the helm for less than two years, has indicated the firm would be active in pursuing acquisitions, particularly focusing on software-related deals. The timing aligns with Schneider's growing exposure to AI and data-center infrastructure, with strong U.S. data-center demand driving the company's earnings and helping offset weakness in traditional electrical-equipment markets.
The acquisition reflects ongoing shifts in the software industry due to artificial intelligence disruption, as software companies seek to secure revenue streams amid concerns that advances in AI could offer competing services at lower costs. Jefferies analysts noted that "AI disruption fears are still weighing on software valuations, which allows acquiring PTC at a decade-low valuation." PTC's board approved the offer, which represents a significant premium compared to its recent share price. PTC founder Neil Barua emphasized that "We gain substantial scale and resources to accelerate innovation, advance our Intelligent Product Lifecycle vision, and expand our business into more geographies and end markets to serve more customers." The deal comes as Schneider, which manufactures equipment for energy systems including data-center cooling technology and provides product-management software, continues to benefit from the rapid expansion of AI data centers.
