Schneider Electric acquires software company PTC for $22 billion, explicitly framing the deal as advancing its AI infrastructure and industrial software ambitions.

Schneider Electric has agreed to acquire PTC, a Nasdaq-listed enterprise software company, for $22.6 billion. The transaction is priced at $205 per share, or 13 times earnings.

PTC provides enterprise software solutions including product lifecycle management, computer-aided design, and application lifecycle management tools. Schneider characterized the acquisition as creating a "leading, scaled, open, and interoperable industrial software and AI franchise," with high-quality recurring revenue to support its "digital flywheel" ambition.

The announcement drew divergent market reactions. Schneider's share price dropped nearly 10 percent on the news, while PTC's premarket price rose nearly 36 percent.

Olivier Blum, CEO of Schneider Electric, said: "The acquisition of PTC represents an important step forward in our ambition to lead the new era of energy and industrial intelligence. Together, we are creating the industry's most complete software and AI powerhouse and highest-quality portfolio bridging the physical and digital worlds. By connecting and contextualizing data across the lifecycle of products and assets, we will create a unique digital thread for the next generation of Industrial AI, helping customers to optimize their systems with greater intelligence from design and build to operate and maintain."

Neil Barua, president and CEO of PTC, added: "Joining Schneider Electric is an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally. We gain substantial scale and resources to accelerate innovation, advance our Intelligent Product Lifecycle vision, and expand our business into more geographies and end markets to serve more customers."

This marks Schneider's largest transaction to date. The company previously announced an agreement to acquire industrial AI business Cognite for $3.1 billion earlier this year.

The deal will be funded through an equity issuance of approximately €5–6 billion ($5.6–7.1 billion) and new debt of approximately €16–17 billion ($17.9–19 billion), with total cash consideration secured through a fully committed bridge facility provided by Morgan Stanley and Société Générale. The transaction is expected to close by Q3 2027.