Schneider Electric S.E. (Rueil-Malmaison, France) has signed a definitive agreement to acquire PTC Inc. (Boston, Mass.), a provider of industrial product design, engineering and data-management software, in an all-cash deal that values PTC’s equity at about $22.6 billion (€20.1 billion), the companies announced Oct. 5. PTC shareholders will receive $205 per share, a 42.3% premium to the company’s last closing price. The deal implies an enterprise value of $23.7 billion.
PTC’s computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM) and service lifecycle management (SLM) tools serve more than 30,000 customers and are used for product design and engineering across discrete and hybrid manufacturing. The company generated about €2.4 billion in revenues in 2025 with an adjusted EBITA margin of roughly 40%, and expects revenues and annual recurring revenues to grow by about 10% per year through 2029.
Schneider says the purchase extends its industrial software platform upstream into product design and engineering. PTC would complement AVEVA Group Limited (Cambridge, U.K.), Schneider’s industrial software subsidiary, as well as the company’s proposed acquisition of Cognite Holding B.V. (Lysaker, Norway). Together, the companies expect to create a unified digital thread and an AI-ready data foundation spanning products, machines, processes and energy systems. The transaction is also expected to roughly triple Schneider’s addressable market in industrial software and raise software and services to an estimated 24% of pro forma group revenues.
Schneider expects €250 million of annual run-rate cost synergies by year three and approximately €800 million of revenue synergies. The roughly €22-billion cash consideration is backed by a fully committed bridge facility from Morgan Stanley & Co. International plc (London) and Société Générale S.A. (Paris). Schneider plans to fund the deal with an equity issuance of €5–6 billion and €16–17 billion of new debt, and says it expects to retain its Category A credit ratings.
The boards of both companies have unanimously approved the transaction, which is expected to close by the third quarter of 2027, pending approval by PTC shareholders and regulators. As a result of the deal, Schneider will bring forward its third-quarter 2026 revenue release to Oct. 16.