Schneider Electric Buys PTC for $22.6B

Schneider Electric has announced its largest acquisition to date, agreeing to purchase U.S. software firm PTC for roughly $22.6 billion. This move is designed to enhance Schneider's data centre infrastructure business and its industrial software capabilities.

The acquisition will integrate PTC's product-design and lifecycle-management software into Schneider's existing offerings. This integration is expected to strengthen Schneider's capacity for deploying artificial intelligence across its customers' industrial operations.

This deal follows Schneider's earlier agreement in June to acquire Cognite Holding, a private AI software and industrial data provider. The combined efforts underscore Schneider's strategy to expand its software-as-a-service revenue.

Financing for the PTC acquisition will involve issuing new shares valued between €5 billion and €6 billion, alongside new debt totaling €16 billion to €17 billion. Schneider anticipates realizing €250 million in annual cost savings by the third year post-closing.

The transaction is subject to approval from PTC shareholders and regulatory bodies, with an expected closing by the third quarter of 2027. This expansion aligns with booming demand in the data centre market.