Schneider Electric agreed to pay $22.6bn for PTC. Its shares fell over 9%.
Schneider Electric, the French maker of electrical equipment, will pay $205 a share in cash for PTC, Euronews reported on Monday.
PTC, once called Parametric Technology, is a US company. Engineers use its software to design products. The price is 42.3% above PTC's last share price before the news. Including PTC's debt, the deal is worth about €21.1 billion.
Schneider's shares fell more than 9% in morning trading. Jefferies, an investment bank, said fears that artificial intelligence would hurt software companies had made PTC cheap, at its lowest value in a decade. It warned the same fears could keep weighing on Schneider's shares.
Chief executive Olivier Blum said the deal bridges "the physical and digital worlds." Euronews said the deal is expected to close in the third quarter of 2027. PTC has more than 30,000 customers.
Schneider may borrow up to €17 billion and issue up to €6 billion of new shares. Both are upper limits, so they do not show what it will actually raise. The reports do not say how much will come from each.
If your engineers design in PTC's software and your factory orders parts in a different system, who makes sure each design change reaches the factory after the deal?
Sources
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