Schneider Electric to buy U.S. software maker for $22.6 billion

French automation and energy management giant Schneider Electric has reached an agreement to buy American industrial software developer PTC. The deal is valued at $22.6 billion and is the largest for Schneider Electric.

PTC is one of the “big three” global manufacturers of industrial software, whose products, including the Creo and Windchill programs, are used by Apple, BMW, Raytheon and thousands of other companies and organizations. Under the terms of the agreement, Schneider Electric will pay $205 for each share of PTC, which is a premium of 42% of the U.S. company’s share price at close on Friday. The PTC Board of Directors recommended that its shareholders approve the proposal.

If the deal goes through, Schneider Electric will have one of the world’s largest industrial software portfolios, enabling the French company to accelerate its transformation from an electrical equipment maker to a digital giant serving data centers and smart factories.

Investors reacted to the news of a potential deal ambiguously. Shares of Schneider Electric in today's trading fell by 8%. PTC shares in electronic trading before the opening session soared by 35%.

Alena Miklashevskaya