Schneider Electric to buy US software maker PTC for $22.6bn in cash

Schneider Electric has agreed to buy PTC, a US maker of industrial design and engineering software, for about $22.6bn (€20.1bn) in cash. The French group announced the deal on Monday morning.

The announcement came a day after the Financial Times first reported that the two companies were close to an agreement, at a price of about $20bn.

Under the final terms, Schneider will pay $205 for each PTC share. That is a 42.3% premium to PTC’s Friday closing price of $144.03, the company said. Including debt, the deal values PTC at about $23.7bn.

It is Schneider’s largest acquisition to date, Bloomberg reported . Its previous biggest software deal was the buyout of UK industrial software company Aveva, completed in 2023, which valued Aveva at about £9.5bn.

PTC, based in Boston, makes software that manufacturers use to design, build and service their products. It has more than 30,000 customers worldwide.

“The acquisition of PTC represents an important step forward in our ambition to lead the new era of Energy and Industrial Intelligence,” said Olivier Blum, Schneider’s chief executive.

PTC’s board has approved the deal and will recommend it to shareholders. The companies expect to complete it by the third quarter of 2027, once regulators and PTC’s shareholders have signed off.

Schneider expects the deal to save about €250m a year by the third year after it closes, the company said.

The purchase adds to a run of software deals. In June, Schneider agreed to buy industrial AI firm Cognite for $3.1bn and fold it into Aveva.

That deal has not yet closed. Last month, it also made a €1.2bn takeover offer for Bulgarian smart-home device maker Shelly Group.

Schneider will now publish its third-quarter revenue on October 16, earlier than planned, because of the deal.