Schneider Electric acquired PTC for $22.6 billion to expand AI business

French company Schneider Electric completed a deal to purchase American software developer PTC. The equity value of PTC in the transaction is estimated at approximately $22.6 billion.

Shares of the French engineering company fell by 4.7% on the Tradegate platform before the main trading session opened, as investors assessed the scale of the acquisition and feared that Schneider was paying a significant premium for a company operating in the software sector, which is facing valuation pressure due to the development of artificial intelligence technologies and uncertain growth prospects.

"Large-scale mergers and acquisitions (M&A) typically do not find initial support among European investors, although Schneider Electric's deals have usually been strategically sound, albeit controversial in terms of valuation," analysts at J.P. Morgan noted in a memo to investors.

This acquisition marks the largest purchase in Schneider's history, making it the third largest publicly traded company in France by market capitalization. The company stated that the acquisition will create a large business in industrial software and artificial intelligence, based on open and compatible systems. It anticipates that in the third year after the deal closes, annual cost savings will reach 250 million euros, while revenue synergies are expected to be approximately 800 million euros.

In June, Schneider agreed to buy Cognite Holding, a private supplier of software with AI elements and solutions for industrial data management. The financing of the deal will be through a combination of equity and borrowed funds, with closure expected in the third quarter of 2027.

Previously known primarily as a manufacturer of industrial components, Schneider is now creating an infrastructure foundation for data centers, providing everything from cooling systems and server racks to critical power distribution equipment. The booming demand for data centers, especially from the United States, is contributing to Schneider's increased profits.

PTC offers software solutions for designing, manufacturing, and servicing products across various industries. Habr News reported the story.