Schneider Electric (SU) M&A announcement summary

Deal rationale and strategic fit

• PTC’s CAD, PLM, ALM and SLM capabilities extend the software portfolio across product design, engineering, operations and lifecycle management.

• Open, interoperable software and AI platform to connect product, asset, process and energy data across design, build, operate and maintain.

• Expands industrial software addressable market ~3x, with cross-selling opportunities across complementary customers, channels and geographies.

• Combined software projected at 24% of pro forma CY25 revenue; recurring revenue at ~89% of software revenue.

Financial terms and conditions

• All-cash offer for 100% of PTC at $205 per share; implied enterprise value $23.7bn and equity value ~$22.6bn.

• Offer implies 21x 2027E adjusted EBITA before synergies and 13x with full run-rate synergies.

• Financing plan includes €5–6bn of equity issuance, €16–17bn of new debt and a committed bridge facility.

• Adjusted EPS accretion expected at low single digits in the first full-consolidation year and mid-to-high single digits with full run-rate synergies.

Synergies and expected cost savings

• Targets €250m of annual cost synergies by Year 3 and ~€800m of revenue synergies from cross-selling, channel and market expansion, and joint digital-thread solutions.

• One-time implementation costs of €250m expected by Year 2.