Schneider Electric announced on Monday that it has reached an agreement to acquire U.S. software company PTC Corporation in an all-cash transaction worth $22.6 billion. The $205 per-share offer implies an enterprise value of about $23.7 billion for the Boston-based PTC, representing a 42.3% premium to the most recent closing price.
Schneider said the deal will be financed through a combination of equity issuance and new debt. The parties expect the transaction to close in the third quarter of 2027. Following the announcement, PTC shares were set to open significantly higher — around a 34.4% increase — on U.S. markets.
Market reaction: Schneider shares fall sharply
Investors reacted negatively to the deal. Schneider Electric shares fell roughly 9.3% on the French stock exchange after the announcement, with other reports putting the decline near 10%. Market participants cited concerns about the size of the $22.6 billion price tag and the financing risks associated with the transaction.
Strategic rationale
Historically known for industrial electrical equipment such as circuit breakers and switches, Schneider Electric has in recent years become an important player in data-center infrastructure, supplying cooling units, server racks and critical power distribution equipment. The rapidly growing demand for data centers, especially in the United States, has become an increasingly significant revenue stream for the company.
PTC provides product and manufacturing design tools as well as service solutions across multiple industries, and it benefits from rising demand for AI-enabled tools. The acquisition represents another step in Schneider’s push into software: the company agreed in June to acquire Cognite Holding, a firm focused on artificial intelligence and industrial data management.
Financial context and next steps
Schneider Electric raised its full-year revenue outlook in July after reporting record first-half results. Nevertheless, investors appear to be penalizing the company over the large purchase price and the impact of the deal’s financing on the balance sheet and leverage.
Regulatory approvals and customary closing conditions remain, and the parties expect to complete the transaction in Q3 2027 if those are met.
Sources and notes
This article is based on reporting by Reuters. It does not constitute investment advice. An AI assistant contributed to the preparation of this article; the final content was edited and verified by our journalist.
Tags: acquisition, software, PTC, Schneider Electric, artificial intelligence, data center, financing
