Schneider Electric acquired PTC for $22.6 billion to expand AI business
October 7, 2026 · 2 min read
French company Schneider Electric has completed a deal to acquire American software developer PTC. The equity value of PTC in the transaction is estimated at approximately $22.6 billion.
Shares of the French engineering company fell by 4.7% on the Tradegate exchange before the main trading session began, as investors assessed the scale of the acquisition and expressed concerns that Schneider is paying a significant premium for a company in the software sector facing valuation pressures due to the development of artificial intelligence technologies and uncertain growth prospects.
"Large-scale mergers and acquisitions (M&A) typically do not initially find support among European investors, although Schneider Electric's deals have generally proven strategically sound, albeit contentious in terms of valuation," analysts at J.P. Morgan noted in a memo to investors.
This transaction marks Schneider’s largest acquisition ever, making it the third-largest publicly traded company by market capitalization in France. The company stated that the acquisition will help create a substantial business in industrial software and artificial intelligence, based on open and compatible systems. It expects annual cost savings of €250 million by the third year after the deal closes, with a revenue synergy effect reaching approximately €800 million.
In June, Schneider agreed to acquire Cognite Holding, a private software provider featuring artificial intelligence and industrial data solutions. The financing for this deal will be a combination of equity and debt, with closure expected in the third quarter of 2027.
Schneider, previously known primarily as a manufacturer of industrial components such as fuses and circuit breakers, is now building an infrastructure foundation for data centers, supplying everything from cooling systems and server racks to critical power distribution equipment.
The surge in demand for data centers, particularly from the U.S., is driving Schneider’s profit growth.
PTC provides software solutions for the design, manufacture, and maintenance of products across various industries.