Schneider Electric to buy PTC for $22.6 billion

Schneider Electric said Monday it would buy PTC, a US-based maker of software for industrial clients, for $22.6 billion in cash.

The French energy and software group said PTC's board had agreed to the deal, which it said represented a 42 percent premium to PTC's most recent share price.

Schneider makes equipment for energy systems, including data centre cooling, and also offers product management software. PTC specialises in computer-aided design and other industrial processes.

Schneider said the deal would create “a leading, scaled, open and interoperable industrial software and AI franchise”. PTC chief executive Neil Barua said the company would gain scale and resources to accelerate innovation and expand into more markets.

PTC, based in Boston, has about 7,000 employees and 30,000 clients, and generates roughly half of its revenue in the Americas.

Schneider said it would take on up to 17 billion euros, or $19 billion, in debt and issue up to six billion euros in new shares to pay for the acquisition. Schneider shares were down more than eight percent in early Paris trading.

Analysts at Jefferies said fears of AI disruption were still weighing on software valuations and had allowed Schneider to acquire PTC at what they called a decade-low valuation.