Why it matters
- It is the largest acquisition in Schneider Electric's history, and investors pushed its shares down on the cost and the new debt.
- PTC shareholders get $205 a share in cash, a 42.3% premium; PTC stock jumped 33.5% but closed below the offer price.
- Schneider is one of the biggest stocks in France's CAC 40, so its fall dragged the index down 0.8%.
Schneider Electric shares fell 9.72% to close at 273.55 euros in Paris on Monday, Oct. 5, after the French energy technology group agreed to buy U.S. industrial software maker PTC in an all-cash deal that values PTC's equity at about $22.6 billion, RTTNews reported.
PTC shares jumped 33.5% to close at $192.26 on the Nasdaq, according to Yahoo Finance data and The Boston Globe, up from $144.03 on Friday.
What are the terms of the Schneider-PTC deal?
Schneider will pay $205 per PTC share in cash, the companies said in a joint release. That is a 42.3% premium to PTC's last closing price and a 46.1% premium to its 30-day volume-weighted average price.
The deal values PTC's equity at about $22.6 billion, or 20.1 billion euros, and implies an enterprise value of $23.7 billion. Both boards approved it unanimously. The companies expect it to close by the third quarter of 2027, subject to a vote by PTC shareholders and regulatory approvals.
| Deal term | Figure |
|---|---|
| Price per PTC share | $205 in cash |
| Premium to last close | 42.3% |
| Equity value | about $22.6 billion |
| Enterprise value | $23.7 billion |
| Cost savings by year 3 | 250 million euros a year |
| Revenue synergies | about 800 million euros |
Source: Schneider Electric and PTC joint release, Oct. 5, 2026.
How will Schneider pay for PTC?
The total cash cost of about 22 billion euros is backed by a bridge loan from Morgan Stanley and Société Générale, Schneider said. It plans to repay that with about 5 billion to 6 billion euros of new shares and about 16 billion to 17 billion euros of new debt.
Schneider also said it expects to pause its share buybacks in 2027 and 2028 and still finish its planned 2.5 billion to 3.5 billion euros of buybacks by the end of 2030. It expects to keep its A-category credit ratings, subject to confirmation by the ratings agencies.
Why did investors sell Schneider?
Analysts liked the strategy but worried about the price and the extra debt, Zonebourse reported. Jefferies analysts said fears of AI disruption had pushed software valuations down, which let Schneider buy at a low valuation, but they warned those fears could continue to weigh on Schneider's shares, according to Euronews.
Schneider is the second-largest stock in the CAC 40 by weight, BFM Bourse reported. The French index fell 0.8% to 7,834.10.
What does Schneider get?
PTC makes computer-aided design and product lifecycle software used by manufacturers. It has more than 30,000 customers and generated 2.4 billion euros of revenue in 2025, excluding its ThingWorx and Kepware businesses, Schneider said. Chief Executive Olivier Blum said the deal creates "the industry's most complete Software & AI powerhouse."
Schneider will move up its third-quarter revenue report to Oct. 16.
For more on the companies moving markets, see our companies section. The pressure on French assets is covered in our report on France's borrowing costs, and today's other big mover is Brazil's record stock rally.
Sources
- Schneider Electric, Schneider Electric to acquire PTC (financial release, PDF)
- RTTNews, Schneider Electric stock falls 10% after PTC acquisition deal
- Yahoo Finance, PTC Inc. historical prices
- Investing.com, Schneider Electric shares tumble on $22.6 bln PTC deal
- Euronews (via Yahoo Finance), Schneider Electric shares plunge on record $22.6bn PTC deal
- BFM Bourse, CAC 40 weighed down by Schneider Electric's 10% fall
- Zonebourse, Le CAC 40 sous pression, Schneider Electric dévisse de près de 10%
- The Boston Globe, Schneider Electric set to acquire Boston's PTC for $22.6 billion
