Schneider Electric has agreed to buy US industrial software firm PTC in an all-cash deal valuing its equity at about $22.6 billion, one of the year’s biggest industrial technology acquisitions.

The $205-per-share offer implies an enterprise value of $23.7 billion and represents a 42.3 per cent premium to PTC’s last closing share price. The deal, announced Monday, is expected to close in the third quarter of 2027.

The acquisition will be financed through a mix of equity and new debt. Schneider expects 250 million euros in annual run-rate cost synergies by the third year, plus about 800 million euros in revenue synergies.

Schneider shares fell about 10 per cent on the news as investors weighed the financing. The deal deepens Schneider’s push into industrial software and AI-driven factory tools, following its agreement to buy Cognite in June.

The deal deepens Schneider’s shift toward software: the company lifted its 2026 revenue forecast after record first-half results and has been adding data-centre capabilities as US demand booms. PTC provides software for designing, manufacturing and servicing industrial products, and has benefited from rising demand for AI-powered tools. Closing is subject to shareholder and regulatory approvals.