Schneider Electric shares tumble after record $22.6bn PTC acquisition deal
French energy technology group Schneider Electric has agreed to buy US software firm PTC for $22.6 billion in its largest-ever acquisition, but the announcement sent its shares sharply lower.
Schneider Electric, one of Europe's most valuable companies, has confirmed an agreement to acquire PTC, a US-based industrial design software company, in what will become the largest acquisition in Schneider's history. The move aims to strengthen the French group's industrial AI capabilities by tapping into product and engineering data.
Under the terms, Schneider will pay $205 per share in cash for all of PTC's outstanding shares, valuing PTC's equity at $22.6 billion (€20.1bn) and its total enterprise value, including debt, at $23.7 billion (€21.1bn). The offer represents a 42.3% premium over PTC's last closing price, and PTC's board has already approved the agreement.
Schneider said the combined business would merge industrial software and AI to help customers design, manufacture, operate and maintain products more efficiently, using industrial data to inform decisions. Chief executive Olivier Blum described the deal as a major step toward leading a new era of energy and industrial intelligence, calling the combined company one of the industry's most complete software and AI portfolios.
Valuation dented by AI disruption fears
The acquisition comes against a backdrop of concern that artificial intelligence could erode traditional software companies' business models by enabling cheaper alternatives. Analysts have noted that such fears pushed PTC's valuation down to a decade-low level this year, allowing Schneider to secure the company at a relatively favourable price — though the same pressures could continue to weigh on Schneider's own share price going forward.
PTC chief executive Neil Barua said the deal would give the company greater scale and resources to accelerate innovation and expand into new markets and geographies. The Boston-based firm employs more than 7,000 people and serves over 30,000 customers, with roughly half its revenue coming from the Americas.
To finance the purchase, Schneider plans to issue up to €17 billion in new debt and up to €6 billion in new shares. The company expects annual cost savings of €250 million by the third year after closing, plus around €800 million in additional revenue from combining operations. Schneider will also pause its share buyback programme in 2027 and 2028. The deal is expected to close by the third quarter of 2027, pending shareholder and regulatory approval. Following the announcement, Schneider's shares fell more than 9% in morning trading in Paris.
