Schneider Electric Agrees to Buy PTC for $22.6 Billion, Its Biggest Deal Ever

Schneider Electric has agreed to acquire the US software company PTC for about $22.6 billion in cash, the largest deal in the French group's history. Both companies confirmed the agreement on October 5, 2026, and the transaction still needs shareholder and regulatory approval before it can close (The Next Web, Robotics 24/7).

The terms of the deal

Term	Detail
Offer	$205 per PTC share, all cash
Equity value	About $22.6 billion (about €20.1 billion)
Enterprise value	About $23.7 billion (about €21.1 billion)
Premium	42.3% to PTC's Friday close of $144.03; 46.1% to the 30-day volume-weighted average
Valuation	21x PTC's expected 2027 adjusted operating earnings; 13x including synergies
Funding	€5-6 billion new equity, €16-17 billion new debt
Expected close	Third quarter of 2027

The boards of both companies unanimously approved the deal, and PTC's board recommends that shareholders support it (Capital.com). Before the announcement, the Financial Times had reported that the companies were close to a deal at about $20 billion, so the final price came in higher.

PTC, based in Boston's Seaport district, had revenue of €2.4 billion in calendar 2025 with an adjusted margin of about 40 percent, and Schneider expects it to grow about 10 percent a year through 2029.

How Schneider plans to pay

The total cash requirement is about €22 billion. Schneider will fund it with €5 billion to €6 billion of new equity and €16 billion to €17 billion of new debt, with Morgan Stanley and Societe Generale providing a bridge facility. That is a heavy borrowing load, which explains why the company spelled out the financing from the first announcement.

Schneider expects €250 million of annual cost savings by the third year after closing, plus about €800 million of additional revenue from selling the two businesses' products together. Both figures are Schneider's own estimates.

What PTC brings

PTC makes software for computer-aided design and for managing a product through its whole life, from the first drawing to manufacturing and service. Schneider has spent decades selling the physical and control equipment that runs factories, buildings and power networks, and already owns industrial software maker AVEVA. Its plan is to pair PTC's design data with AVEVA's operational data for industrial AI (The Tech Capital).

Chief executive Olivier Blum described the deal as an important step in the company's ambition to lead what it calls the new era of Energy and Industrial Intelligence. PTC chief executive Neil Barua said it would widen the scope and impact of what the company delivers to customers. Business Standard notes that it follows Schneider's June agreement to buy Cognite, an industrial data software company with AI features, and that Schneider reported record first-half results for 2026 and raised its revenue forecast.

Why the AI framing matters

AI systems in factories and power networks need clean design data, digital models of products and records of how equipment is built and maintained, and PTC holds much of that material for its customers. Whether the combination produces the cross-selling Schneider forecasts will take years to prove.

For PTC shareholders the picture is simpler: a cash premium above 40 percent. For Schneider shareholders the questions are the debt, the new shares and whether 21 times earnings is justified by the promised savings.

Risks and open questions

The deal needs approval from PTC shareholders and competition regulators in several countries, and a transaction of this size involving a design software vendor with customers in many industries may draw close review. Closing is a year away, leaving room for market conditions, interest rates and share prices to change. The synergy and growth figures are company projections; the price and structure come from the signed agreement.

What it means for buyers and users

Customers of either company will see no immediate change, because the businesses remain separate until closing. Longer term, PTC's design tools could be linked more tightly with Schneider's control, energy and AVEVA software, though neither company has described specific product or pricing changes.

What to watch next

Watch for the merger agreement and proxy filings, which should show how the board reached the price and whether other bidders were considered, for regulatory filings, and for the terms of Schneider's equity raise.

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