Schneider Electric has agreed to acquire US industrial software maker PTC for $22.6 billion in cash, the French group’s largest-ever acquisition.

Under the deal announced on October 5, Schneider will pay $205 per PTC share, a 42.3 per cent premium to its last closing price. The transaction implies an enterprise value of $23.7 billion.

The acquisition combines Schneider’s energy and industrial expertise with PTC’s design and engineering software, which serves more than 30,000 customers with computer-aided design and product lifecycle management tools. Schneider aims to build an industrial software and AI franchise for data centres and factories.

Schneider will fund the deal with €5-6 billion in new shares and €16-17 billion in debt. It expects €250 million in annual cost savings by year three plus €800 million in revenue synergies.

PTC’s board unanimously recommended the deal. Completion is expected by the third quarter of 2027, pending shareholder and regulatory approval. Schneider shares fell 9.4 per cent in Paris on the announcement.