Paris/Boston: Schneider Electric has agreed to acquire U.S.-based industrial software company PTC in an all-cash transaction with an implied enterprise value of approximately $23.7 billion, marking the French energy and automation group’s largest acquisition to date.

Under the agreement, Schneider Electric will pay $205 per PTC share, valuing PTC’s equity at approximately $22.6 billion. The offer represents a 42.3% premium to PTC’s previous closing price.

Major Expansion Into Industrial Software

The acquisition will significantly expand Schneider Electric’s software business. PTC develops software used by manufacturers and engineering companies for product design, engineering, manufacturing and management of technical data.

Schneider said the combination is intended to create a major industrial software and artificial intelligence platform built around connected and interoperable systems.

The deal reflects the increasing importance of software and AI in industrial operations, where companies are seeking better ways to connect product design, factory operations, energy consumption and maintenance data.

AI Becomes a Major Part of the Strategy

Artificial intelligence is one of the key factors behind the transaction.

PTC’s software portfolio provides access to large volumes of industrial and engineering data, while Schneider has been expanding its own capabilities in industrial automation, energy management and AI-powered software.

The combined business is expected to use AI-enabled technologies to help manufacturers improve productivity, optimize industrial systems and make better use of operational data.

Schneider Expects Significant Synergies

Schneider Electric estimates that the transaction could generate around €250 million in annual cost synergies by the third year after completion.

The company also expects approximately €800 million in revenue synergies, which it plans to pursue through cross-selling, broader customer access, expanded geographic reach and AI-enabled digital solutions. These figures are company projections rather than guaranteed financial results.

Deal Requires Regulatory Approval

The transaction has been approved by the boards of both companies, but it has not yet closed.

PTC shareholders must approve the agreement, and the deal also requires the necessary regulatory clearances. Completion is currently expected in the third quarter of 2027.

The acquisition will be financed through a combination of equity and new debt.

Schneider Strengthens Its Software Portfolio

The PTC transaction continues Schneider Electric’s strategy of expanding beyond traditional electrical equipment into industrial software and digital technologies.

The company previously agreed to acquire Cognite, an industrial data and AI software company, and has also expanded its presence in technologies connected to data centres.

The rapid growth of AI infrastructure has created additional demand for Schneider’s energy-management, cooling, automation and power-distribution products, while software has become an increasingly important part of the company’s broader business strategy.

PTC Gains Greater Global Scale

For PTC, joining Schneider Electric could provide access to a much larger global industrial customer network and additional resources for product development.

PTC’s software is used across industries where companies design, manufacture and maintain complex physical products. Combining those capabilities with Schneider’s industrial automation and energy expertise could create opportunities for integrated digital solutions.

A Major Bet on Industrial AI

The acquisition comes at a time when artificial intelligence is reshaping the global industrial software market.

Manufacturers are increasingly looking beyond conventional automation and seeking AI systems that can analyze engineering information, operational data and equipment performance.

Schneider Electric’s purchase of PTC therefore represents more than a conventional software acquisition. It is a strategic bet that industrial software, connected data and artificial intelligence will become increasingly central to the future of manufacturing and industrial automation.

If completed successfully, the transaction would create one of the industry’s largest combined software portfolios and further strengthen Schneider Electric’s position at the intersection of energy management, automation, industrial software and AI.