Schneider to buy PTC in $22.6 billion cash deal

Schneider Electric SE (SUp) has agreed to acquire Boston-based industrial software company PTC Inc. (PTC) in an all-cash transaction announced on October 5, 2026. The deal values PTC at approximately $22.6 billion, with headline figures describing it as roughly a $23 billion acquisition. The transaction is designed to bring PTC’s suite of industrial and engineering software into Schneider’s global portfolio.

The total cash consideration for the acquisition is about €22 billion. Schneider said this amount is fully secured through a bridge financing facility provided by Morgan Stanley (MS) and Société Générale (GLEp), ensuring funding availability ahead of permanent financing measures.

Schneider plans to refinance the bridge facility through a mix of equity and debt. The group expects to issue up to €6 billion of new equity and raise up to €17 billion in new debt instruments to fund the purchase price. This structure underscores the size of the transaction relative to Schneider’s capital markets access.

The company expects the acquisition to close by the third quarter of 2027, subject to customary closing conditions and approvals. This extended timeline reflects the scale of the deal and the regulatory processes that typically accompany large cross-border transactions in the industrial and technology sectors.

Schneider stated that adding PTC will expand its offering of engineering software for industries including automotive, aerospace and medical technology. The combination is intended to strengthen Schneider’s capabilities across industrial software and digitally enabled operations.

Chief Executive Officer Olivier Blum described the transaction as creating “the industry’s most complete software and AI powerhouse.” This highlights Schneider’s intention to position the combined company at the center of software- and AI-driven industrial solutions.

PTC Chief Executive Officer Neil Barua said the company will gain substantial scale and resources to accelerate innovation and extend its geographic reach under Schneider’s ownership. The comments emphasize management’s expectation that access to Schneider’s global platform will support further product development and market expansion for PTC’s software portfolio.

Equity markets reacted differently for the two companies after the announcement. Schneider’s shares fell as much as 9.4% in Paris trading, marking their sharpest drop since April. The decline came after Schneider’s stock had risen by almost 30% earlier in the year through the preceding Friday’s close.

By contrast, PTC’s shares surged in U.S. trading following the deal’s disclosure, rising sharply after having been down about 17% over the same year-to-date period before the announcement. The share price moves reflect investors’ reassessment of PTC’s value under the agreed takeover terms.

Morgan Stanley (MS) is acting as lead financial adviser to Schneider Electric (SUp) on the acquisition. Evercore (EVR) is serving as financial adviser to PTC. Their roles encompass advising on structure, valuation and execution of what ranks as a major transaction in the industrial software and AI space.