Schneider Electric acquires PTC for 23.7 billion euros

The French electronics company Schneider Electric has completed its largest acquisition to date, taking over the US software firm PTC. This acquisition, valued at 23.7 billion euros, aims to expand Schneider Electric's business in data centers, which is currently experiencing a surge in demand, particularly from the United States. PTC provides software solutions that assist manufacturing companies in designing industrial products and creating technical specifications.

The cash transaction, priced at 205 US dollars per share, values PTC's equity at approximately 22.6 billion US dollars. Schneider will also assume PTC's debts. According to reports, Schneider Electric plans to finance the acquisition through the issuance of new shares worth five to six billion euros and by taking on debts of 16 to 17 billion euros. The completion of the acquisition is expected in the third quarter of 2027, pending approval from PTC shareholders and regulatory authorities.

While PTC's stock surged in trading on Monday morning, Schneider's shares fell by about ten percent. Investors are weighing the magnitude of the acquisition, the high premium over the stock price, and the valuation outlook for software companies amid market uncertainties caused by artificial intelligence, according to Reuters.

Schneider Electric, which began in locomotive manufacturing, now offers data center services for chip manufacturers such as Nvidia, generating about a quarter of its total revenue.

The merger with PTC is set to create the "most comprehensive software and AI powerhouse" in the industry, which will assist customers in optimizing their systems, stated Schneider's CEO Olivier Blum. He emphasized the importance of digital expertise in future success, highlighting that the company with knowledge of operations in buildings, data centers, and the infrastructure sector, alongside digital skills, will thrive. Blum noted that PTC's engineering and design data would enhance Schneider's ability to implement AI in customers' industrial processes.

He also hinted at the possibility of further acquisitions by Schneider Electric. Just at the end of September, the French company acquired the Bulgarian smart home manufacturer Shelly for around 1.2 billion euros. In June, Schneider had already reached an agreement to acquire the AI software and industrial data provider Cognite for 3.1 billion US dollars.

Reported by Heise.