Schneider Electric shares plunge on record $22.6bn PTC deal
French energy technology group Schneider Electric has signed a definitive agreement to acquire Boston-based PTC for $22.6bn (€20.1bn) to expand its industrial AI business. The French company's shares plummeted on Monday following the announcement.
Schneider Electric, one of Europe's most valuable companies, saw its shares plunge after confirming an agreement to buy US-based industrial design software company PTC.The deal is expected to be the largest acquisition in Schneider Electric's history, as the company seeks to expand its industrial AI capabilities using product and engineering data.The French energy technology group will pay $205 per share for 100% of PTC's shares in cash, valuing its equity at $22.6bn (€20.1bn) and the business, including debt, at $23.7bn (€21.1bn).
The deal "creates a leading, scaled, open and interoperable industrial software and AI franchise", Schneider said in a statement, adding that PTC's board had agreed to the deal. The offer represents a 42.3% premium to PTC's last closing share price.Schneider said the deal would combine industrial software and AI to help customers design, manufacture, operate and maintain products more efficiently, using industrial data to guide decisions and improve performance.Olivier Blum, chief executive of Schneider Electric, said: "The acquisition of PTC represents an important step forward in our ambition to lead the new era of Energy and Industrial Intelligence.
Together, we are creating the industry’s most complete Software & AI powerhouse and highest-quality portfolio bridging the physical and digital worlds." The move comes amid concerns that advances in artificial intelligence could undermine software companies' business models by offering cheaper alternatives to their services.PTC’s valuation this year had fallen as low as 13.1 times the next 12 months' earnings, according to MarketWatch, citing FactSet.The publication cited analysts at Jefferies who warned that fears of AI disruption had depressed software valuations, allowing Schneider to buy PTC at a decade-low valuation, but could continue to weigh on Schneider's shares after the deal.PTC's chief executive Neil Barua said: "We gain substantial scale and resources to accelerate innovation, advance our Intelligent Product Lifecycle vision, and expand our business into more geographies and end markets to serve more customers."
The Boston-based company has more than 7,000 employees and serves more than 30,000 customers. It generated roughly half of its revenue in the Americas in its 2025 financial year.Schneider expects to issue up to €17bn in debt and up to €6bn in new shares to pay for the deal.The company said it expects annual cost savings of €250m by the third year after completion, alongside approximately €800m in additional revenue from combining the businesses.Schneider also expects to pause share buybacks in 2027 and 2028, before accelerating purchases to complete its existing €2.5bn–€3.5bn programme by the end of 2030.
The deal is expected to close by the third quarter of 2027, subject to customary conditions, including approval from PTC shareholders holding at least a majority of its outstanding shares and the required regulatory approvals.Schneider's shares were down more than 9% in morning trading in Paris following the announcement.