Schneider Electric Bets $22.6 Billion on Industrial Software

Posted on in Strategy

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Schneider Electric has agreed to buy PTC, the Boston-based maker of software for industrial product design and engineering, for about US$22.6 billion in cash. It is the largest acquisition in Schneider's history. The French group will pay US$205 per PTC share, a 42.3% premium to PTC's last closing price and a 46.1% premium to its 30-day volume-weighted average. Including debt, the implied enterprise value is US$23.7 billion.

Both boards approved the deal unanimously, and PTC's board recommends that shareholders accept. Completion is expected by the third quarter of 2027, subject to shareholder and regulatory approval. CEO Olivier Blum called it an important step in Schneider's ambition to lead what the company calls the new era of Energy and Industrial Intelligence.

From the factory floor to the drawing board

PTC makes CAD, PLM, ALM and SLM software, serves more than 30,000 customers and generated €2.4 billion in revenue in 2025, with an adjusted EBITA margin of around 40%. Schneider already owns industrial software group AVEVA and in June agreed to buy industrial data and AI provider Cognite. With PTC and Cognite on board, Schneider estimates software and services would make up about 24% of group revenue. In short, a group built around energy and industrial operations wants to own the software where products are designed, too.

  • Expected annual run-rate cost synergies: €250 million by the third year after completion.
  • Expected revenue synergies: about €800 million.
  • Funding: an equity issue of roughly €5–6 billion plus €16–17 billion of new debt.

The market's mixed review

Investors were less excited than the board. Schneider shares fell close to 10% in early Paris trading, wiping almost €15 billion off its market value, while PTC shares rose 34.4% in US pre-market trading. Schneider also said share buybacks are expected to pause in 2027 and 2028 once its 2026 programme is completed. Big strategic pivots rarely come cheap, and this one arrives with a price tag that shareholders will be watching closely.