Schneider Electric announces plan to acquire PTC for $23.7 billion

Schneider Electric has announced plans for a $23.7 billion acquisition of PTC, according to SiliconANGLE. The reported all-cash transaction would add product-design, product-lifecycle and connected-operations software to Schneider Electric’s industrial technology portfolio, making the Schneider Electric PTC acquisition a significant move into engineering software.

The offer values PTC at $205 per share, which SiliconANGLE reported was a 42.3% premium to PTC’s previous closing price. The available reports do not disclose PTC revenue, headcount, financing arrangements, a closing timetable or expected deal benefits. The transaction has been announced as a plan and should not be described as completed.

What would Schneider Electric get by acquiring PTC?

PTC makes software used by manufacturers across product development and industrial operations. Its Creo product is used to design physical products, including car components and medical devices, SiliconANGLE reported. The software also includes simulation capabilities intended to test a design under operating conditions such as high temperatures.

Creo can also help engineers assess materials and production methods for a design, including manufacturing with equipment such as 3D printers or robotic arms, according to SiliconANGLE. PTC’s other products include Mathcad, which supports the sharing of engineering calculations, charts and explanatory material, and Codebeamer, a product for teams developing software for physical products.

Earlier reporting had indicated that a transaction was under discussion. Seeking Alpha, citing Bloomberg News and a person familiar with the talks, reported that Schneider was nearing a deal worth more than $20 billion. At that point, the companies had not commented, according to the report. The subsequently reported $23.7 billion price and cash terms provide the first specific public terms in the material available.

How did PTC shares react to the reported bid?

TMT Breakout reported that PTC shares rose 35% after the roughly $24 billion bid was announced. It also reported 5% gains in Procore and Autodesk shares, characterizing those moves as sympathy gains. The report did not establish whether those share-price changes would persist or identify deal-specific implications for the other software companies.

For Schneider, the acquisition proposal is a bet on software that sits upstream of factory operations and product delivery. PTC’s portfolio covers design and engineering workflows as well as product lifecycle management and connected industrial operations, according to Seeking Alpha. Whether the companies can combine those products with Schneider’s existing energy-management and automation businesses, and on what terms, remains unaddressed in the reported announcement details.

This story draws on original reporting from SiliconANGLE.