Schneider says the combination will be a contextualized, AI-ready data foundation intended to support productivity, resilience, efficiency and sustainability.
Schneider Electric has agreed to acquire industrial software company PTC for approximately $22.6 billion, bringing together portfolios spanning product design, engineering, industrial operations and service.
Under the agreement announced Oct. 5, Schneider will pay $205 in cash for each PTC share, valuing PTC’s equity at approximately $22.6 billion. The transaction is expected to close by the third quarter of 2027, subject to shareholder and regulatory approvals.
For Schneider, the acquisition fills what it describes as a gap in its industrial software portfolio by adding PTC’s product and engineering capabilities to its existing process and energy data foundation.
“The acquisition of PTC represents an important step forward in our ambition to lead the new era of Energy and Industrial Intelligence. Together, we are creating the industry’s most complete Software & AI powerhouse and highest-quality portfolio bridging the physical and digital worlds,” Schneider Electric CEO Olivier Blum said.
Connecting product and operational data
PTC provides computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM) and service lifecycle management (SLM) software. The company serves more than 30,000 customers and generated approximately €2.4 billion (US$2.69B) in revenue and a roughly 40% adjusted EBITA margin in calendar 2025.
Schneider says PTC will add product and engineering data to its industrial AI data foundation, which currently includes process and energy data. The company says the combination will connect “engineering intent” with real-world operational context.
PTC’s CAD, PLM, ALM and SLM capabilities will extend Schneider’s asset lifecycle platform upstream into product design and engineering. Schneider says the resulting platform will span the lifecycle from design and build through operation and maintenance.
The companies also say the combination will establish a unified digital thread across products and machines, processes and energy systems. Schneider describes this as a contextualized, AI-ready data foundation intended to support productivity, resilience, efficiency and sustainability.
“By connecting and contextualizing data across the lifecycle of products and assets, we will create a unique digital thread for the next generation of Industrial AI,” Blum said.
An open industrial software portfolio
Schneider says the combined business will create a scaled, open and interoperable industrial software and AI portfolio, while preserving an open-by-design approach across vendors and hardware.
The combined business is expected to have about 15,000 software employees and more than 50,000 software customers. Software and services revenue is expected to represent approximately 24% of Schneider’s group revenue.
The transaction is also expected to triple Schneider’s total addressable market in industrial software, including greater exposure to discrete and hybrid manufacturing.
Schneider says its global reach, market access and industry expertise will broaden PTC’s customer base and end-market exposure, while creating “significant bi-directional cross-selling opportunities.”
PTC President and CEO Neil Barua said the acquisition will provide PTC with additional resources to expand its business.
“Joining Schneider Electric is an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally,” Barua said. “We gain substantial scale and resources to accelerate innovation, advance our Intelligent Product Lifecycle vision, and expand our business into more geographies and end markets to serve more customers.”
The companies say the combination will also create opportunities for AI-enabled development of digital-thread solutions. Schneider expects approximately US$280 million in annual run-rate cost synergies in three years and approximately US$896 million in revenue synergies. The company says the synergies will come from cross-selling across complementary customer footprints, extending channels and end-market access, broadening geographic reach and joint development.
For manufacturers using PTC software, the acquisition would put PTC’s product design and engineering data capabilities inside a broader Schneider software portfolio spanning design, operations, energy and maintenance.
Schneider’s stated objective is to connect those systems through a unified digital thread and contextualized AI data foundation spanning products and machines, processes and energy systems.
