Schneider Electric agrees to acquire PTC for $23.7 billion

Schneider Electric agreed to acquire PTC for $205 a share in cash. The agreement values the U.S. industrial-software company at about $22.6 billion on an equity basis and $23.7 billion on an enterprise-value basis. If completed, the deal would add PTC’s product-design and lifecycle-management data to Schneider Electric’s automation, energy-management and industrial-AI portfolio.

The acquisition is expected to close by the third quarter of 2027, subject to approval by holders of at least a majority of PTC shares, required regulatory clearances and other customary conditions. Both boards unanimously approved the agreement, and PTC’s board resolved to recommend that shareholders vote for it.

PTC’s software spans computer-aided design, product lifecycle management, application lifecycle management and service lifecycle management. Schneider Electric said those capabilities would connect product-design and engineering data with information from factory operations and energy systems, forming what the companies describe as a common data layer and digital thread for industrial AI.

Schneider Electric expects to fund roughly €22 billion of cash consideration with about €5 billion to €6 billion of equity and €16 billion to €17 billion of new debt. According to the announcement, a fully committed bridge facility backs the purchase price.

The company forecasts €250 million in annual cost savings by the third year after closing. It also projects about €800 million of revenue synergies from cross-selling, broader distribution and geographic reach, and AI-enabled joint development of digital-thread solutions. Those targets are forward-looking estimates, not realized results.

Schneider Electric estimates that its Software & Services business, including its pending Cognite acquisition, would represent about 24% of pro forma group revenue after the PTC deal. The company said the combined operation would have more than 15,000 software employees and more than 50,000 software customers, while roughly tripling its addressable market in industrial software. The announcement cites broker consensus for roughly 10% annual growth in PTC’s revenue and annual recurring revenue through 2029; that rate is an expectation rather than observed growth.

Schneider Electric expects the transaction to add a low-single-digit percentage to adjusted earnings per share before purchase-price-accounting effects in the first full year of consolidation. It forecasts mid-to-high-single-digit accretion once the projected synergies are fully realized. Shareholder and regulatory reviews remain outstanding ahead of the targeted third-quarter 2027 close.