Schneider Electric acquires PTC for $22.6 billion to expand AI business

white and black robot — Franck V. / Unsplash

French company Schneider Electric has finalized a deal to acquire American software developer PTC. The equity value of PTC in this acquisition is estimated at approximately $22.6 billion.

Shares of the French engineering company fell by 4.7% on the Tradegate platform even before the main trading began, as investors assessed the scale of the acquisition and expressed concerns that Schneider is paying a significant premium for a company operating in the software sector that faces valuation pressure due to the development of artificial intelligence technologies and uncertain growth prospects.

Analysts from J.P. Morgan noted in an investor memo that "large-scale mergers and acquisitions (M&A) typically do not initially gain support from European investors, although Schneider Electric's deals have generally been strategically sound, albeit contentious in terms of valuation."

This acquisition marks the largest purchase in Schneider's history, making it the third largest publicly traded company in France by market capitalization. The company stated that the acquisition will enable the creation of a large-scale industrial software and artificial intelligence business based on open and compatible systems. It expects that by the third year after closure, annual cost savings will amount to 250 million euros, and the revenue synergy effect will reach approximately 800 million euros.

In June, Schneider agreed to acquire Cognite Holding, a private software provider with elements of AI and solutions for managing industrial data. Financing for the deal will be through a combination of equity and debt, with closure expected in the third quarter of 2027.

Schneider, previously known primarily as a manufacturer of industrial components such as fuses and circuit breakers, is now building the infrastructure foundation for data centers, supplying everything from cooling systems and server racks to critical power distribution equipment. The surge in demand for data centers, especially from the United States, is driving Schneider's profit growth.

PTC offers software solutions for the design, manufacturing, and servicing of products across various industries.