Schneider Electric agrees to buy PTC for $205 a share in cash, about $22.6bn, pitching an “AI Data Foundation” for industry
The premium is 42.3% to PTC's last close. Schneider will raise about €5–6bn of equity and €16–17bn of debt, and expects to close by the third quarter of 2027.
Schneider Electric said on Monday 5 October that it will buy PTC, the US maker of product-design and lifecycle-management software, for $205 a share in cash. Its regulated release values PTC's equity at about $22.6 billion (€20.1 billion) and gives an implied enterprise value of $23.7 billion (€21.1 billion). That is a premium of 42.3% to PTC's last close and 46.1% to its 30-day volume-weighted average price.
PTC's Form 8-K says the merger agreement was signed on 4 October and that each share will convert into “the right to receive $205 in cash, without interest”. PTC would owe Schneider a $700 million termination fee in specified circumstances. The conditions include PTC shareholder approval and US antitrust (HSR) and CFIUS clearance. Schneider says closing is anticipated by Q3 2027.
Schneider pitches the deal on AI. It promises “a unified digital thread fuelled with a contextualized AI Data Foundation across products & machines and processes & energy systems”: PTC's design and engineering data joined with Schneider's industrial and energy software. It expects €250 million of annual run-rate cost synergies by year 3 and about €800 million of revenue synergies, for which the release gives no date.
It plans to pay with about €5 to 6 billion of new equity, through an accelerated bookbuild, and about €16 to 17 billion of new debt, backed by a fully committed bridge from Morgan Stanley and Société Générale.
The price is a bet that the data describing how products and factories are designed becomes worth more once AI can work on it. PTC would leave Nasdaq if the deal closes.
- Confirmed $205 a share in cash; equity value about $22.6bn (€20.1bn); enterprise value $23.7bn (€21.1bn); premium 42.3% to the last close. Schneider Electric regulated release
- Confirmed The merger agreement is dated 4 October 2026; PTC would owe a $700m termination fee in specified cases; HSR and CFIUS clearance are conditions. PTC Form 8-K
- Claimed €250m of annual run-rate cost synergies by year 3 and about €800m of revenue synergies. Schneider Electric regulated release
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