Schneider Electric Agrees to Buy PTC for $22.6 Billion

Schneider Electric has agreed to acquire PTC in an all-cash transaction valued at approximately $22.6 billion, marking the French energy and industrial technology company’s largest acquisition to date. Schneider will pay $205 per PTC share, representing a 42.3% premium to PTC’s previous closing price and valuing the transaction at approximately $23.7 billion including debt. PTC’s board has approved the agreement and recommended that shareholders support the deal.

The acquisition gives Schneider access to PTC’s portfolio of industrial engineering and product-lifecycle-management software, including its Creo computer-aided-design platform. The technology is expected to complement Schneider’s existing software operations, particularly AVEVA and Cognite, allowing the company to offer manufacturers a broader combination of industrial data, engineering software and artificial-intelligence capabilities. Schneider says the combination will significantly expand the market it can address with software.

Schneider plans to finance the transaction through a combination of new shares and debt. The company expects to issue between €5 billion and €6 billion in new shares and raise approximately €16 billion to €17 billion in new debt. The scale of the financing has raised concerns among investors, with Schneider’s shares falling about 9% on Monday as markets assessed the cost of the acquisition and the risks involved in integrating a major software business.

The deal also reflects Schneider’s broader strategy to benefit from growing demand for artificial intelligence and digital infrastructure. The company has expanded its presence in data centres and industrial technology as AI increases demand for electricity, cooling, automation and digital-management systems. Schneider CEO Olivier Blum said PTC’s industrial data and software capabilities could strengthen the company’s position as manufacturers increasingly combine physical operations with AI-powered digital systems.

The transaction is expected to close by the third quarter of 2027, subject to shareholder and regulatory approvals. If completed, PTC will become a wholly owned subsidiary of Schneider Electric and its shares will be delisted from Nasdaq. The acquisition will significantly reshape Schneider’s software portfolio, but investors will be watching closely to see whether the company can deliver the expected revenue synergies and justify the substantial premium and financing costs associated with its largest-ever takeover.