With PTC, Schneider Electric is adding CAD and PLM software to its portfolio. “Together, we are creating the industry’s most complete Software & AI powerhouse,” said CEO Olivier Blum.
PTC develops CAD, PLM, ALM, and SLM software that enables manufacturers to design complex physical products and manage their engineering data throughout the entire lifecycle. The company has over 30,000 customers and reported revenue of €2.4 billion euros in 2025, with an adjusted EBITA margin of approximately 40 percent. Revenue and ARR are expected to grow by about 10 percent annually through 2029.
Schneider Electric is acquiring all PTC shares for $205 per share. That represents a 42.3 percent premium over the last closing price. Including debt, the enterprise value amounts to $23.7 billion. Both boards unanimously approved the deal.
From design to maintenance
In 2022, Schneider announced it would fully acquire AVEVA, the industrial software division in which it already held a majority stake. Last June, it acquired Cognite, a provider of industrial data and AI software, for $3.1 billion. That deal has not yet been finalized.
While AVEVA and Cognite focus on process and energy data, PTC brings product and engineering data. Schneider refers to a “digital thread” that runs from design and construction through to operation and maintenance. This data is intended to provide AI agents with the context they need. According to Schneider, the addressable market for industrial software is expected to roughly triple, particularly in discrete and hybrid manufacturing.
Following the deal, software and services are estimated to account for 24 percent of group revenue, with more than 15,000 software employees and over 50,000 software customers.
Financed primarily with debt
The purchase price is provisionally covered by a bridge facility from Morgan Stanley and Société Générale. Ultimately, financing will come from €5 billion to €6 billion euros in new shares and €16 billion to €17 billion in new debt. Schneider expects €250 million in annual cost synergies in year three and approximately €800 million in revenue synergies.
This has implications for the share buyback program. After €600 million in 2026, the buyback will pause in 2027 and 2028. Schneider intends to maintain its A credit rating, although the rating agencies have yet to confirm this.
The acquisition of PTC still requires approval from PTC shareholders at a special meeting, as well as from regulatory authorities. PTC’s board of directors recommends that shareholders approve the deal. Due to the deal, Schneider will announce its third-quarter revenue figures earlier than usual, on October 16.