Investing.com — Shares of fell more than 7% Monday after the French electrical equipment maker agreed to buy a U.S. industrial software company in an all-cash deal valuing the company at about $22.6 billion.
Schneider will pay $205 per CTP stock, a 42.3% premium to PTC’s last closing price of $144.03 before the announcement, the companies said.
The transaction values PTC at approximately $23.7 billion, including debt and other liabilities, and is expected to close by the third quarter of 2027.
The deal comes as Schneider benefits from a boom in investment in artificial intelligence-related data centers. The company has expanded its exposure to data centers through power management, cooling and other infrastructure products.
PTC creates software that helps manufacturers design, create and manage physical products. Its tools enable companies to create products digitally, manage engineering and product information, and track products throughout their lifecycle.
Schneider said the acquisition would complement its industrial software portfolio, including AVEVA and its proposed acquisition of Cognite, and create a broader platform linking product design, engineering, operations and energy data.
Schneider expects the deal to generate 250 million euros in annual cost synergies by the third year and around 800 million euros in revenue synergies.
It expects the transaction to be immediately high single-digit accretive to adjusted earnings per share before accounting for the purchase price in the first full year of consolidation.
The French company is also pursuing the acquisition of the Bulgarian smart home equipment maker for 70 euros per share, valuing it at around 1.27 billion euros.
Schneider’s offer for Shelly, which represents a premium of about 4% to the stock price before the announcement, is conditional on securing at least 95% of the company’s shares and obtaining regulatory approvals.
(Ayushman Ojha contributed to this report)
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