Schneider Electric slumps after $22.6 billion deal to buy PTC
PTC•Schneider Electric shares fell 8% after it agreed to buy PTC in an all-cash transaction valuing the U.S. software company at about $22.6 billion. Schneider will pay $205 per PTC share, financing the deal with a combination of equity and debt issuances.
1. Deal terms
Schneider Electric agreed to acquire PTC in an all-cash transaction valuing the U.S. software company at around $22.6 billion. Schneider will pay $205 per PTC share, with financing from a combination of equity and debt issuances.
2. Analysts flag concerns
Analysts said the deal’s rationale was clear but raised concerns about artificial intelligence and industrial software assets. RBC said the multiples were reasonable but the deal increases Schneider’s exposure to AI concerns, and added that integration will likely be complicated and could prompt renewed capital-allocation discussions. Jefferies said the fears that allowed the deal at a decade-low valuation could weigh on shares after the deal, while Baird called the combination a “powerhouse” in industrial data management.
