Acquisition

Schneider Electric to Buy U.S. Software Maker PTC for $22.6 Billion

co-produced by AI05. Oktober 2026, 08:08

Schneider Electric headquarters in Rueil-Malmaison. © Wilmotte & associés architectes / Wikimedia Commons (CC BY-SA 4.0)

From power switches to design software: The French energy tech group Schneider Electric is acquiring the U.S. industrial software company PTC for about $22.6 billion (about 19.3 billion euros). It is the largest acquisition in the company’s history. Schneider Electric recently announced plans to buy the Bulgarian smart home specialist Shelly for 1.2 billion euros. The PTC deal, however, is in a different league.

The Deal at a Glance

According to the official announcement, Schneider Electric will pay $205 per PTC share, entirely in cash:

Price: The equity value is about $22.6 billion, and the enterprise value including debt is $23.7 billion (about 20.3 billion euros).
Premium: The offer represents a 42.3 percent premium over PTC’s last closing price.
Financing: Schneider plans to raise 5 billion to 6 billion euros in new shares and 16 billion to 17 billion euros in new debt. Morgan Stanley and Société Générale are providing a bridge facility.
Synergies: The company expects 250 million euros in cost savings by the third year and about 800 million euros in revenue synergies.
Timeline: The deal is expected to close in the third quarter of 2027, pending approval by PTC shareholders and regulators.

What Schneider Plans to Do With PTC

Boston-based PTC is a heavyweight in industrial software. The company makes programs for computer-aided design (CAD) and product lifecycle management (PLM) that automakers, aerospace companies and electronics manufacturers use to design and manage their products. PTC generated about 2.4 billion euros in revenue last year with an adjusted margin of about 40 percent, and it has more than 30,000 customers and over 7,000 employees.

Schneider Electric is best known for energy management and automation, from switches and power distribution equipment to data centers. With PTC, the company wants to create a “digital thread” connecting product design, machines, manufacturing processes and energy systems. “Together, we are creating the industry’s most complete Software and A.I. powerhouse,” said Olivier Blum, Schneider’s chief executive. Customers are meant to be able to optimize their systems with greater intelligence, from design and construction to operation and maintenance.

After the deal closes, software is expected to make up about 24 percent of group revenue, with more than 15,000 software employees and over 50,000 software customers. “We gain substantial scale and resources to accelerate innovation,” said Neil Barua, PTC’s chief executive.

The Price of the Software Bet

The bet does not come cheap. To finance the acquisition, Schneider Electric is taking on 16 billion to 17 billion euros in debt. Shareholders will also have to be patient: The share buyback program is set to pause in 2027 and 2028 before picking up speed again. At the same time, the company plans to sell business units worth 1 billion to 1.5 billion euros by 2030. Schneider still aims to keep its credit rating in the A category. The deal is expected to add only slightly to earnings per share in the first year and significantly only once all synergies are realized.

The Race for Industrial Software

With the deal, Schneider Electric is following a clear industry trend. The company already took full control of the British industrial software provider AVEVA in 2023. Its rival Siemens has also been buying its way into the market for years and most recently acquired the U.S. simulation specialist Altair for about $10 billion. In CAD and PLM, Schneider will now compete directly with Siemens, France’s Dassault Systèmes and the U.S. company Autodesk.