Schneider Electric agrees to buy PTC for $22.6 billion
publishers 16articles 16first reported 5 Oct, 05:39 UTCdeveloping since 5 Oct · 7 editions
France’s Schneider Electric has agreed to acquire U.S. software maker PTC for about $22.6 billion in cash, its largest acquisition to date.
The deal would add PTC’s product-design and lifecycle-management software to Schneider’s industrial software and artificial-intelligence operations. Schneider CEO Olivier Blum said PTC’s engineering and design data would help the company deploy AI across customers’ industrial operations. The acquisition would raise software-as-a-service revenue to about 24% of Schneider’s total revenue, he said.
Schneider plans to finance the transaction with €5 billion to €6 billion from an issuance of new shares under an existing shareholder authorization and €16 billion to €17 billion in new debt.
Schneider shares fell nearly 10% in early Paris trading on Monday as investors assessed the acquisition’s size, the premium offered and uncertainty surrounding software valuations. The decline erased close to €15 billion, or $17 billion, from the company’s market value. PTC shares rose 34.4% in U.S. premarket trading.
Schneider supplies data centers with cooling systems, server racks and power-distribution equipment. The company said the PTC purchase would support its expansion into recurring-revenue software as demand for data-center infrastructure grows, particularly in the United States. The agreement follows Schneider’s June deal to acquire industrial data and AI software provider Cognite Holding.
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