PTC Stock Soars 35% After Schneider Electric Agrees to Buy Software Maker in $22.6 Billion All-Cash Deal

NEW YORK — Shares of PTC Inc. surged more than 35% on Monday after French industrial group Schneider Electric agreed to buy the Boston-based industrial software maker for about $22.6 billion in cash, its largest acquisition ever.

PTC stock jumped $50.46 to $194.49 shortly after the opening bell on the Nasdaq, on track for one of the biggest single-day gains in the company's history. The stock had closed Friday at $144.03.

Under the agreement, Schneider will pay $205 per PTC share, a 42.3% premium to Friday's closing price and a 46.1% premium to the stock's 30-trading-day volume-weighted average price. The deal implies an enterprise value of about $23.7 billion, including debt.

PTC shares were trading roughly $10 below the offer price in early trading, a gap that reflects the long timeline to closing and the regulatory approvals the deal must clear.

Schneider bets big on industrial AI

The acquisition is the centerpiece of Schneider's push to build a larger industrial software and artificial intelligence business. The Paris-based company, best known for electrical equipment and power management systems, has benefited from strong demand for its products from data centers built to support AI.

PTC makes software that manufacturers use to design, build and service physical products, including computer-aided design and product lifecycle management tools. Its products, such as Creo and Windchill, are used in industries including automotive, aerospace and medical technology. The company serves about 30,000 customers.

Schneider CEO Olivier Blum said the deal creates "the industry's most complete Software & AI powerhouse" by connecting data across the lifecycle of products and assets.

"The acquisition of PTC represents an important step forward in our ambition to lead the new era of energy and industrial intelligence," Blum said.

In its announcement, Schneider said industrial AI is increasingly being embedded in physical products, machines, processes and energy systems, creating new opportunities across the product lifecycle.

PTC President and CEO Neil Barua said the deal would give the company more scale and reach.

"PTC provides the software the world's leading manufacturers and product companies rely on to design, build and maintain great products and unlock more value from their product data in an increasingly AI-driven world," Barua said.

"Joining Schneider Electric is an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally," he added.

Barua also said PTC will "gain substantial scale and resources to accelerate innovation" and expand into new markets and geographies.

Financing and timeline

Schneider plans to fund the purchase with a combination of new shares and debt. The company said it expects to issue about 5 billion to 6 billion euros in new equity and take on roughly 16 billion to 17 billion euros in new debt. The cash consideration is secured through a bridge loan from Morgan Stanley and Société Générale.

PTC's board unanimously approved the deal and will recommend that shareholders vote in favor.

The transaction is expected to close by the third quarter of 2027, subject to approval by PTC shareholders and regulators.

Morgan Stanley is serving as lead financial adviser to Schneider, while Evercore is advising PTC.

After the deal closes, software and services are expected to account for about 24% of Schneider's total revenue.

Schneider shares fall

Investors in Schneider were less enthusiastic. The company's shares fell about 7% in Paris trading after the announcement, as some shareholders questioned the price and the dilution from the new equity issuance.

Schneider has a market value of roughly 170 billion euros.

JPMorgan reiterated its overweight rating on Schneider, while Jefferies said the deal fills an important gap in Schneider's product lifecycle management portfolio, according to Investing.com.

Acquisition spree

The PTC deal extends a run of software and technology acquisitions by Schneider.

In June, Schneider agreed to acquire industrial AI software company Cognite for about $3.1 billion. Last month, it agreed to buy Bulgarian smart-device maker Shelly Group for about $1.4 billion.

Schneider previously took full control of British industrial software company AVEVA in a deal completed in 2023.

PTC's turnaround story

For PTC, the deal comes after a difficult stretch for its stock. The shares had fallen about 34% from their all-time high reached in July 2025, weighed down by slowing revenue growth, portfolio divestitures and modest near-term guidance.

The stock had traded between about $108.50 and $206.82 over the past 52 weeks before Monday's surge.

PTC reported revenue of about $2.7 billion in 2025. Before the deal was announced, analysts had a consensus price target of roughly $168 to $177 on the stock, well below Schneider's offer.

The company has previously drawn takeover interest. Autodesk explored a cash-and-stock acquisition of PTC in July 2025 but ultimately dropped the pursuit in favor of smaller acquisitions, Bloomberg reported at the time.

Reports of Schneider's interest surfaced in recent days, with the Financial Times reporting that the French company was close to a roughly $20 billion takeover. PTC shares rose about 17% in overnight trading late Sunday as investors anticipated an announcement.

Ripple effects across software

The deal lifted shares of other engineering software companies. Autodesk, PTC's closest U.S.-listed peer, moved higher in premarket trading as investors reassessed valuations across the sector based on the price Schneider agreed to pay.

The transaction also highlights the growing race among industrial giants to combine hardware and software as manufacturers adopt AI to modernize factories, improve efficiency and manage complex production processes. Rivals such as Siemens and ABB have also been expanding their software businesses.

Market backdrop

PTC's move was driven entirely by the deal news. Broader U.S. stock markets were little changed to slightly lower early Monday, as investors looked ahead to the release of minutes from the Federal Reserve's September meeting later in the week.

PTC was founded in 1985 as Parametric Technology Corp. and went public in 1989. It is a component of the S&P 500 index and is headquartered in Boston's Seaport District.

The deal must still clear regulatory reviews in multiple jurisdictions, which could take more than a year. Until then, PTC will continue to operate as an independent company.