Key Takeaways
- PTC shares jumped 33% after Schneider Electric agreed to buy the company for $205 per share in cash, about $22.6 billion in total.
- The stock still trades about 6% below the offer price, which shows the market is confident the deal will close but not certain of it.
- Before the offer, PTC traded at about 12 times forward EBITDA, near the bottom of its five-year range, so a failed deal could mean a steep drop.
- The deal needs approval from PTC shareholders and regulators, and it’s expected to close by the third quarter of 2027.
PTC (PTC) shares are up 33% today after Schneider Electric (SU) agreed to buy the industrial software maker for $205 per share in cash.
PTC CEO Neil Barua’s pitch to shareholders was simple: the deal “delivers certain and compelling value to our shareholders.”
Even after today’s jump, the stock trades about 6% below Schneider’s offer. That gap says a lot about how confident the market is that this deal gets done.
See analysts’ full growth forecasts and estimates for PTC stock (It’s free) >>>
The details
The two companies announced the deal before Monday’s open. The terms…
- $205 per share in cash, valuing PTC’s equity at about $22.6 billion ($23.7 billion including net debt)
- A 42.3% premium to Friday’s close
- 21 times Schneider’s estimate of PTC’s 2027 adjusted EBITA (operating profit before amortization), or 13 times with the full synergies Schneider expects
- Closing expected by the third quarter of 2027
Schneider is buying a company that makes design and product-data software for more than 30,000 customers. PTC had adjusted EBITA margins of about 40% last year, and broker estimates cited by Schneider expect growth of about 10% a year through 2029.
And PTC’s free cash flow has climbed every year, from $344 million in the year to September 2021 to $857 million in the year to September 2025…
Mind the gap
The last 6% is what the market charges for waiting and for risk. The deal needs a majority of PTC shareholders and regulatory approvals. Schneider is also still waiting on regulators to approve its separate purchase of Cognite, an industrial AI company.
Here’s what a broken deal could cost. Before the offer, PTC traded at just 12 times forward EBITDA, near the bottom of its five-year range…
At today’s price, PTC trades at about 17.1x forward earnings, below its 19.4x five-year average.
The bigger issue is the risk-reward. A return to Friday’s $144.03 close would leave today’s buyers down about 25%. If Schneider Electric closes the deal at $205 a share, there’s only about 6.4% upside from here.
The odds are lopsided, and the market is taking the bet anyway. Rightly, I think. Schneider has a bridge loan fully committed for the roughly €22 billion it needs, and both boards approved the deal unanimously. Schneider also says PTC fills a gap in its software lineup. (This is my speculation, but that should give antitrust regulators less overlap to worry about.)
For anyone who owned PTC on Friday, today’s jump is the win. Of course, closing is about a year away, and a lot can change with regulators in that time.
See what analysts think about SU stock right now (Free with TIKR) >>>
So what is PTC stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
