Schneider Electric Bets $22.6 Billion on Industrial Software

Schneider Electric is making one of the biggest bets in its history on software, agreeing to acquire U.S. industrial technology company PTC for approximately $22.6 billion in cash. The deal, announced on October 5, represents Schneider’s largest acquisition to date.

Under the agreement, Schneider will pay $205 per PTC share, representing a premium of more than 40% to PTC’s previous closing price. The transaction still requires shareholder and regulatory approval and is expected to close by the third quarter of 2027.

The acquisition is part of a broader shift in Schneider’s business strategy. Rather than remaining focused primarily on electrical equipment and infrastructure, the company is building a larger position in industrial software, artificial intelligence and digital systems.

PTC develops software used by manufacturers to design products, manage engineering data and oversee industrial operations. Schneider believes combining that technology with its energy and automation businesses could create new opportunities as factories and data centres become increasingly digital.

Investors, however, have raised questions about the price Schneider is paying. The company’s shares fell by around 10% following the announcement, reflecting concerns about the size of the transaction and the uncertain valuation of software businesses in an increasingly AI-driven market.

Schneider expects the deal to generate substantial revenue and cost synergies over the next three years. If completed, the acquisition could mark a significant transformation of the company—from an energy and electrical specialist into a much broader industrial technology and software business.