PTC Inc. (NASDAQ:PTC) stock traded higher Monday after Schneider Electric SE (OTC:SBGSY) agreed to acquire the industrial software company for about $22.6 billion in cash.
The transaction would expand Schneider Electric’s industrial software and artificial intelligence portfolio across product design, engineering and industrial data management.
PTC stock gained as Schneider Electric’s $205-per-share offer represents a 42.3% premium to PTC’s last closing price.
Schneider Electric Offers $205 Per Share
The deal values PTC at an enterprise value of about $23.7 billion, equal to roughly 21 times estimated 2027 adjusted EBITA, or about 13 times including full run-rate synergies.
PTC adds computer-aided design and product lifecycle management capabilities to Schneider Electric’s industrial software platform.
It also brings application lifecycle and service lifecycle management tools.
The transaction would roughly triple Schneider Electric’s addressable market in industrial software and lift Software & Services revenue to an estimated 24% of group revenue on a pro forma basis.
The combined software business would employ more than 15,000 people and serve over 50,000 software customers.
Schneider Targets 250 Million Euros in Cost Synergies
Schneider Electric expects to achieve 250 million euros in annual run-rate cost synergies by Year 3 and about 800 million euros in revenue synergies.
The company expects cross-selling, broader geographic and end-market access, and AI-enabled joint development to drive those gains.
Schneider Electric expects the acquisition to deliver low-single-digit adjusted EPS accretion in the first full year of consolidation.
With full run-rate synergies, the company expects accretion to rise to the mid- to high-single-digit range.
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Deal Expected to Close by Q3 2027
Schneider Electric plans to fund the roughly 22 billion euros cash consideration through a mix of equity and debt. The company expects to raise 5 billion euros to 6 billion euros in equity and 16 billion euros to 17 billion euros in debt.
Morgan Stanley and Société Générale have committed to a fully underwritten bridge facility.
Both companies’ boards unanimously approved the transaction. Schneider Electric and PTC expect to close the deal by the third quarter of 2027, pending shareholder and regulatory approvals.
PTC serves more than 30,000 customers and generated 2.4 billion euros in revenue in 2025. It posted an adjusted EBITA margin of about 40% and expects revenue and ARR to grow roughly 10% annually through 2029.
Schneider Electric CEO Olivier Blum said the PTC acquisition marks a significant step in the company’s push to lead the emerging era of energy and industrial intelligence.
PTC President and CEO Neil Barua said joining Schneider Electric would give PTC a broader platform to expand the reach and impact of its offerings for customers worldwide.
PTC Price Action: PTC shares were up 35.86% at $195.68 during premarket trading on Monday, according to Benzinga Pro data.
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