Schneider Electric to Buy Software Maker PTC for $22.6 Billion — Update

By Adria Calatayud

France's Schneider Electric agreed to buy PTC in an all-cash deal that values the U.S. industrial-software maker at $22.6 billion, moving to prepare its portfolio for industrial artificial intelligence.

Schneider said Monday that it offered $205 a share in cash for PTC, a 42% premium to its last closing price. PTC's board decided to recommend that the company's shareholders approve the deal.

Shares in Schneider dropped more than 8% in European morning trading, while PTC's stock jumped 35% in U.S. premarket exchanges.

The acquisition aims to create one of the largest industrial-software portfolios at a time when the rise of AI is reshaping customer needs, Schneider said. After the deal, nearly a quarter of Schneider's revenue will come from software and services, up from less than a fifth currently.

The fortunes of Schneider, a company with roots in industrial-revolution France two centuries ago, are increasingly tied to AI.

Shares in the French engineering giant have almost doubled in value over the past three years as the data-center build-out sparked a surge in demand for its prefabricated IT and power modules, cooling systems and other products.

The deal for Boston-based PTC is the latest--and biggest--of a buying spree at Schneider this year. The company in June agreed to buy industrial data and AI software provider Cognite Holding for $3.1 billion and last month launched an approximately 1.2 billion-euro ($1.35 billion) takeover bid for smart-device maker Shelly Group.

Schneider said it sees in PTC a complementary asset that expands its offering upstream into product design and engineering, building a portfolio for an age of industrial AI in which the technology moves beyond digital applications and is embedded in machines and physical products.

The company said it sees around 800 million euros in potential revenue synergies and annual cost savings of 250 million euros by the third year after completion. PTC reported revenue of $2.74 billion for the year through Sept. 30, 2025.

Olivier Blum, Schneider's chief executive, said the acquisition of PTC creates a software and AI powerhouse with a portfolio bridging the physical and digital worlds.

Schneider's German peer Siemens has also pushed into software in recent years through its multibillion-dollar acquisitions of U.S. companies Altair Engineering and Dotmatics.

For PTC, the deal allows its business to expand into new markets while bringing certain and compelling value to shareholders, President and CEO Neil Barua said.

PTC shares had been under pressure this year amid investor concerns about the broader software industry due to AI, and the company had moved to speed up buybacks in response to what it viewed as a compressed valuation of its stock. Since the beginning of 2026 through Friday's close, PTC shares were down 17%.

Schneider said it expects to complete its own 600 million-euro buyback this year, before pausing stock repurchases in 2027 and 2028. It reiterated its commitment to a buyback program of 2.5 billion to 3.5 billion euros through 2030.

The companies expect to close the deal by the third quarter of 2027.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 05, 2026 04:47 ET (08:47 GMT)