Schneider Electric shares fall more than 9 per cent after PTC deal
The French group has agreed to buy PTC for US$22.6 billion in cash and expects to finance the acquisition with debt and new shares.
Schneider Electric fell more than 9 per cent during morning trading in Paris after announcing an agreement to acquire US industrial design software company PTC. The transaction is expected to become the French energy technology group's biggest acquisition.
Under the agreement, Schneider will purchase all PTC shares for US$205 each in cash. The price values PTC's equity at US$22.6 billion and puts its value including debt at US$23.7 billion. The offer is 42.3 per cent above PTC's last closing price. Schneider said PTC's board had agreed to the transaction.
Schneider aims to strengthen its industrial artificial intelligence capabilities through PTC's product and engineering data. The company said combining the businesses would help customers use industrial data to improve product design, manufacturing, operations and maintenance.
To fund the purchase, Schneider expects debt issuance of up to €17 billion and new share issuance of up to €6 billion. It forecasts €250 million in yearly cost savings by the third year following completion, as well as approximately €800 million in additional revenue from the combination.
The group also expects to suspend buybacks during 2027 and 2028, then increase purchases to finish its existing €2.5 billion–€3.5 billion programme by the end of 2030.
Completion is expected by the third quarter of 2027. Conditions include approval by PTC shareholders representing at least a majority of outstanding shares, along with the necessary regulatory clearances.
