Schneider Electric said it will acquire Boston-based industrial software company PTC (NASDAQ: PTC) for about $22.6 billion, paying $205 a share in cash in what would be the largest acquisition in the company’s history.
Industrial software deal targets AI data center growth
PTC is known for product design software and product lifecycle management, or PLM, tools that help manufacturers organize engineering data. Schneider Electric plans to combine those capabilities with its own businesses in power distribution equipment, cooling systems, server racks, and other data center infrastructure hardware, linking product design and development more directly with real-world energy operations.
As generative AI has pushed up demand for computing infrastructure, data center operations have grown to about one-quarter of Schneider Electric’s total revenue. Group leader Blum said access to engineering and design information would improve the company’s ability to apply AI in industrial processes, adding that data will be central to extracting economic value from intelligent systems.
Investors react sharply to the 42% premium
Markets responded in opposite directions after the announcement. Schneider Electric offered a 42% premium for PTC, raising concerns about acquisition costs and the financial burden of the transaction. Its shares fell as much as 10% in early trading in Paris, erasing nearly €15 billion in market value in a single day.
PTC, by contrast, jumped more than 34% after the U.S. market opened. Before the deal was announced, PTC’s market capitalization stood at about $15.5 billion, and its shares were down 15.3% for the year. Schneider Electric’s market value was about €175 billion, making it France’s third-largest listed company.
An analysis firm said recent concerns around changes in AI technology had weighed on software valuations more broadly. Even though Schneider Electric is buying PTC at a relatively lower valuation multiple, investors are still treating the size of the deal and the premium with caution.
Part of a wider software and AI acquisition strategy
The PTC deal fits Schneider Electric’s push to become a broader industrial software and AI solutions provider. Before announcing this acquisition, the company agreed in June to buy industrial data and AI services provider Cognite for $3.1 billion. It later said it would acquire Bulgaria-based smart home device maker Shelly Group for $1.4 billion.
Beyond its own hardware operations, Schneider Electric also provides energy and technology services to chipmakers including Nvidia, placing it among the key suppliers tied to the buildout of AI data centers. Through a series of acquisitions across data, software, and AI, the group is expanding its reach from power distribution at the infrastructure layer to data analysis higher up the stack.
Key terms of the transaction
- Offer price: $205 a share in cash.
- Total deal value: about $22.6 billion.
- Premium: 42%.
- Estimated enterprise value: about $23.7 billion.
- Core integration focus: PTC’s PLM and CAD software with Schneider Electric’s cooling and power distribution systems.