France’s Schneider Electric struck the biggest deal in its history, agreeing to buy US software company PTC in an all-cash deal valuing PTC’s equity at around $22.6 billion, Reuters reported, citing a company statement.
The Terms of the Deal
The $205-per-share offer implies an enterprise value of $23.7 billion for Boston-based PTC, and represents a 42.3% premium over its last closing price.
Schneider’s shares fell 4.7% on Tradegate before markets opened, as investors weighed the size of the acquisition alongside concerns that Schneider is paying a steep premium for a software business facing AI-driven valuation pressure and uncertain growth prospects.
J.P. Morgan analysts noted the market’s typical reaction to this kind of move. Large-scale M&A is typically unwelcome in the first instance by European investors, although Schneider Electric’s deals have typically proven strategically astute, if debatable from a valuation standpoint, the firm wrote in a note to investors.
The Biggest Deal in Schneider’s History
The transaction is the largest acquisition Schneider has ever made. The company is France’s third-highest-valued listed company by market capitalisation, according to LSEG data.
Schneider said the acquisition will create a scaled industrial software and AI business built around open and interoperable systems. The company expects the deal to generate €250 million in annual run-rate cost savings by the third year after closing, alongside roughly €800 million in expected revenue synergies.
Part of a Broader Software Push
This deal continues Schneider’s recent push into software acquisitions. In June, the company agreed to buy Cognite Holding, a privately held provider of AI software and industrial data.
The PTC acquisition will be financed through a combination of equity and new debt, and is expected to close in the third quarter of 2027.
From Circuit Breakers to Data Centre Infrastructure
Schneider was once known primarily for industrial components like fuses and circuit breakers. Today, the company builds much of the physical backbone behind data centres, supplying everything from cooling units and server racks to critical power distribution equipment.
Booming demand for data centres, particularly from the United States, has been driving Schneider’s earnings, offering a growing source of revenue that’s helping offset weakness in some of its more traditional electrical-equipment markets.
PTC, for its part, provides software used for designing, manufacturing, and servicing products across multiple industries, and has itself benefited from rising demand for its AI-powered tools.
