Schneider Electric (SU) investor relations material

Deal rationale and strategic fit

• Combines PTC’s CAD, PLM, ALM and SLM capabilities with industrial, automation, energy and data capabilities, spanning design and build through operation and maintenance.

• Aims to create an open, interoperable industrial software and AI platform that connects product, asset, process and energy data across a digital thread.

• Expands industrial software addressable market by ~3x, with cross-selling opportunities from complementary customers, channels and geographic reach.

Financial terms and conditions

• All-cash offer for 100% of PTC at $205 per share, valuing equity at $22.6bn and implying $23.7bn enterprise value; premiums of 42.3% to last close and 46.1% to the prior 30-day VWAP.

• Implied valuation is 21x 2027E adjusted EBITA before synergies and 13x with full run-rate synergies.

• Financing includes €5–6bn of equity, expected via an ABO, and €16–17bn of new debt, backed by a committed, fully underwritten bridge facility.

• Adjusted EPS accretion expected in the first year before PPA: low single-digit with phased synergies and mid-to-high single-digit at full run rate.

Synergies and expected cost savings

• Targets €250m of annual cost synergies by Year 3 and ~€800m of revenue synergies; one-time implementation costs of €250m are expected by Year 2.

• Cost-savings levers include SG&A, public-company costs, procurement, shared geographies, IT, R&D and selected infrastructure efficiencies.

• Revenue synergies are expected from cross-selling, broader channels and markets, and AI-enabled joint digital-thread solutions; opportunities begin after closing and build over the midterm.