Schneider Electric shares tumble 7% on $22.6 bln PTC deal
French energy technology group Schneider Electric has agreed to buy Boston-based US software company PTC in an all-cash deal valuing the equity at $22.6 billion, marking the largest purchase ever for the French engineering giant. Schneider Electric agreed to pay $205 a share in cash, which represents a premium of roughly 42 percent. Following the announcement, Schneider Electric shares fell sharply, plunging between 7 percent and 16 percent as investors weighed integration risks, debt funding, and the hefty premium paid for the industrial software maker.
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- ✓ Schneider Electric signed a definitive agreement to acquire Boston-based software company PTC for $22.6 billion.
- ✓ The all-cash transaction values PTC equity at $205 per share.
- ✓ The acquisition represents a 42 percent premium for the U.S. software maker.
- ✓ Schneider Electric shares fell following the announcement of its biggest deal ever.
What changed
Schneider Electric signed a definitive agreement to acquire PTC for $22.6 billion in cash.
Live updates
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Schneider Electric Shares Plunge on $22.6B PTC Acquisition
French energy technology group Schneider Electric has agreed to buy Boston-based US software company PTC in an all-cash deal valuing the equity at $22.6 billion, marking the largest purchase ever for the French engineering giant. Schneider Electric agreed to pay $205 a share in cash, which represents a premium of roughly 42 percent. Following the announcement, Schneider Electric shares fell sharply, plunging between 7 percent and 16 percent as investors weighed integration risks, debt funding, and the hefty premium paid for the industrial software maker.
Why it matters
The acquisition represents a major strategic move for Schneider Electric as the company expands its industrial software and artificial intelligence business. PTC is a prominent U.S. software group specializing in engineering solutions. The massive transaction immediately put industrial software stocks in focus while resetting market attention on deal completion, regulatory risks, and the resulting merger spread.
What is confirmed
- Schneider Electric signed a definitive agreement to acquire Boston-based software company PTC for $22.6 billion.
- The all-cash transaction values PTC equity at $205 per share.
- The acquisition represents a 42 percent premium for the U.S. software maker.
- Schneider Electric shares fell following the announcement of its biggest deal ever.
What to watch next
- Regulatory approvals required for the PTC acquisition
- Updates on debt funding and integration timelines from Schneider Electric
confidence 100%Sources used for this update (19)
- Bloomberg.com — Schneider Said to Near Deal to Buy PTC for More Than $20 Billion
- Reuters — France's Schneider Electric nears $20 billion deal to acquire US software group PTC, source says
- Financial Times — Schneider Electric nears deal to buy industrial software group PTC for $20bn
- Yahoo Finance — Schneider Electric Deal Puts Industrial Software Stocks In Focus
- Investing.com — Schneider Electric to buy U.S. software maker PTC for $22.6 bln
- www.euronews.com — Schneider Electric shares plunge on record $22.6bn PTC deal
- finance.yahoo.com — Schneider Electric shares plunge on record $22.6bn PTC deal
- www.aol.com — Schneider Electric to buy US software firm PTC in $22.6 ... - AOL
- www.rte.ie — Schneider Electric to buy PTC in $22.6 billion deal - RTÉ
- www.cnbctv18.com — France’s Schneider Electric to buy PTC for $22.6 billion in ...
- www.tradingkey.com — PTC Stock Forecast: $22.6 Billion Schneider Deal Resets the ...
- pomegra.io — Schneider Electric Stock Falls 7% After $22.6B PTC Deal
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