Schneider Electric, the French energy-management and industrial automation giant, announced on Monday, October 5, an agreement to acquire 100% of PTC Inc. (Nasdaq: PTC), a U.S. company specializing in product design software and industrial product lifecycle management, for $205 per share, all in cash.
It is the largest deal in Schneider Electric’s history, following the $3.1 billion acquisition of Cognite that closed last July.
The transaction values PTC at $22.6 billion in equity (€20.1 billion) and $23.7 billion in enterprise value (€21.1 billion), a 42.3% premium to the last closing price and 46.1% over the 30-day volume-weighted average. The multiple paid is 21 times expected 2027 adjusted EBITA (earnings before interest, taxes and amortization) excluding synergies, falling to 13 times once full run-rate synergies are included.
How the deal is financed
The cash consideration, roughly €22 billion, will be covered by a bridge loan fully underwritten by Morgan Stanley and Société Générale. It is to be refinanced with new multi-currency debt of €16 billion to €17 billion and a €5 billion to €6 billion capital increase through an accelerated bookbuild offering (a rapid share placement with institutional investors).
Schneider Electric aims to keep an A-category credit rating. The group estimates annual cost synergies of €250 million by the third year and revenue synergies of about €800 million. It expects the deal to be accretive to adjusted earnings per share from the start, by a low single-digit percentage in the first year and a mid-to-high single-digit percentage with full synergies, with a return on invested capital above the cost of capital by year five. Closing is expected by the third quarter of 2027, subject to a vote by PTC shareholders and regulatory approvals.
Schneider Electric CEO Olivier Blum said that «the acquisition of PTC represents an important step in our ambition to lead the new era of energy and industrial intelligence». PTC President and CEO Neil Barua called the deal «an incredible opportunity to elevate the reach and impact of what we offer our customers around the world».
According to the two companies, the combination creates a unified industrial software and artificial intelligence platform that links design, manufacturing and plant operations across the entire product lifecycle, expanding Schneider’s addressable market in industrial software by roughly three times.
Wall Street rewards PTC, Paris punishes Schneider
On Wall Street, PTC shares, which closed at $144.03 on Friday, October 2, jumped in premarket trading to about $196 (+36%), close to the offer price. In Paris, by contrast, Schneider Electric opened sharply lower and by late morning was down between 8% (as of 9:37 a.m.) and about 9%, according to news agencies, a swing that reflects the intraday course of the session rather than a single definitive figure.
Analysts at Jefferies noted that fears about the resilience of software business models in the face of artificial intelligence have compressed valuations across the sector, allowing Schneider to buy PTC at its lowest multiple in a decade. That same pressure, however, could keep weighing on Schneider’s shares even after the deal is completed.
Editor’s note
This article was originally published in Italian on money.it by Ufficio Studi Money.it on October 05, 2026 as «Schneider Electric compra PTC per 22,6 miliardi di dollari. Il titolo Usa vola del 36%, ma il colosso francese crolla in Borsa». It has been translated and adapted for an international audience by the Money.it International desk.
