Schneider Electric engineered an all-cash acquisition at $205 per share for 100% of the share capital of PTC, a multi-billion industrial software company based in Boston. The total acquisition price is approximately $22.6 billion.

According to the press release, the acquisition will create a large  industrial software and AI franchise that will help customers with systems of design, control, data and intelligence.

Olivier Blum, Schneider Electric’s CEO said in the press release, “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 attempting to create the industry’s most complete software & AI powerhouse and a high-quality portfolio bridging the physical and digital worlds.

“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, helping customers to optimize their systems with greater intelligence from design and build to operate and maintain. Neil Barua and the PTC teams have established an outstanding track record of growth, innovation and customer success.

“At Schneider Electric, we have built a strong leadership position in industrial software with AVEVA under the leadership of Caspar Herzberg. Together, with Cognite’s unique AI capabilities, we will accelerate innovation, unlock new opportunities and create long-term value for our customers, employees and shareholders as we shape the future of energy and industrial intelligence.”

Neil, president and CEO of PTC, said in the press release, “PTC provides the software the world’s leading manufacturers and product companies rely on to design, build and maintain great products and unlock more value from their product data in an increasingly AI-driven world. Joining Schneider Electric is an incredible opportunity to elevate the scope and impact of what we deliver for our customers globally. 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.

“This all-cash transaction is the culmination of the PTC Board’s commitment to maximize shareholder value. It delivers certain and compelling value to our shareholders and reflects the strength of PTC’s business, our strategy, and our outstanding team. I am deeply grateful to our talented and dedicated employees around the world for everything they have done to make PTC what it is today. We look forward to building on this strong foundation and beginning an exciting new chapter with Schneider Electric.”

The Schneider Electric press release said the world is entering a new era of energy and industrial intelligence, driven by the convergence of the new energy landscape and the acceleration of digitalization & AI, fundamentally reshaping customer needs. As industrial AI moves beyond digital applications and is increasingly embedded in physical products and machines, the press release said processes and energy systems, new customer opportunities are created across the lifecycle.

Schneider Electric and PTC believe the acquisition will help customers use their industrial data for actionable intelligence and AI-driven outcomes.