SCHNEIDER ELECTRIC AGREES $22.6BN DEAL FOR PTC

Schneider Electric has agreed to acquire US engineering software provider PTC in an all-cash deal valuing the company at around $22.6 billion in equity, the French conglomerate said. PTC shareholders will receive $205 per share, a 42.3 per cent premium on PTC's last closing price, according to Schneider, which put the deal's implied enterprise value at $23.7 billion. The acquisition was announced on Monday and is expected to complete by the third quarter of 2027, subject to customary closing conditions. According to the Financial Times, the takeover is the largest in Schneider's history.

PTC, based in Boston and founded in 1985, makes software used for computer-aided design and for managing the lifecycle of industrial products. Schneider said the acquisition would create what it called a "leading, scaled, open and interoperable industrial software and AI franchise", spanning design, build, operation and maintenance of physical systems. Schneider chief executive Olivier Blum said the deal was "an important step forward" in the company's ambition to "lead the new era of energy and industrial intelligence". PTC president and chief executive Neil Barua said joining Schneider was "an incredible opportunity to elevate the scope and impact" of what PTC delivers to customers globally. Schneider is listed as France's third-largest listed company, valued at around $196 billion, according to the Financial Times.

The deal comes as demand for datacentre power and cooling infrastructure tied to artificial intelligence has driven Schneider's market value to more than double over the past four years. It follows other recent Schneider acquisitions, including a roughly $850 million deal for a 75 per cent stake in liquid-cooling specialist Motivair in late 2024 and a $3.1 billion all-cash purchase of industrial data and AI software firm Cognite in July. Schneider has not disclosed further details of how PTC will be integrated once the transaction closes.