Key Takeaways
- Schneider Electric is discussing a potential $20 billion acquisition of PTC.
- The deal would surpass Schneider’s $11 billion Aveva acquisition.
- PTC generated an estimated $2.75 billion in 2026 revenue.
France-based Schneider Electric is in advanced discussions to acquire US industrial software company PTC for nearly $20 billion. If completed, the transaction would become Schneider’s largest acquisition and significantly expand its industrial software business.
The discussions were ongoing as of October 4, and the companies had not reached a confirmed agreement. A transaction would also rank among the largest cross-border deals announced in 2026.
Schneider Electric Targets PTC Software Portfolio
The potential acquisition would give Schneider access to PTC’s software used in product design, engineering, and manufacturing. PTC’s portfolio includes Creo, a platform used for computer-aided design and product development.
PTC was founded in Boston in 1985 and expects to generate $2.75 billion in revenue in 2026. The company had a market capitalisation of about $15.5 billion, while the potential transaction would value it at nearly $20 billion.
The proposed price would represent a significant premium to PTC’s market value. PTC shares had fallen 15.3% in 2026 through October 4.
For Schneider, the transaction would build on its expansion into industrial software. The company completed its $11 billion acquisition of UK-listed Aveva in 2023, giving it a larger position in software for industrial operations.
PTC’s products could add further capabilities to Schneider’s existing software portfolio, particularly in engineering and industrial design. The combination would also increase Schneider’s exposure to software used earlier in the manufacturing and product development process.
Schneider has increased its acquisition activity in the industrial technology sector during 2026. In June, it agreed to acquire industrial data and artificial intelligence company Cognite for $3.1 billion. In September, Schneider announced a $1.4 billion agreement to acquire Shelly Group, a Bulgarian technology company focused on smart home devices.
The proposed PTC transaction would be substantially larger than those deals and would mark a significant increase in Schneider’s software investment.
Deal Would Expand Schneider’s Industrial Technology Strategy
Schneider has increasingly focused on software and digital technologies alongside its energy management and industrial automation businesses. Chief Executive Olivier Blum had previously indicated that the company would remain active in acquisitions, particularly transactions supporting its industrial automation operations.
The company has also benefited from growing demand for infrastructure supporting artificial intelligence. Data center-related activities now account for about one quarter of Schneider’s sales.
The PTC acquisition would add another software business to that portfolio while expanding Schneider’s presence in manufacturing technology.
The transaction would also come during a period of lower software deal activity as companies assess the impact of artificial intelligence on existing business models. Only 10 global transactions valued above $10 billion were completed during the 3 months through September.
Schneider’s scale would make the potential acquisition significant for both companies. Schneider’s market capitalisation stood at about €175 billion, or roughly $195 billion, after its shares gained 28% in 2026. The company ranks as France’s third-largest listed company.
For PTC, a deal would place its software operations within a much larger industrial technology group. For Schneider, the transaction would extend the software capabilities gained through Aveva and strengthen its position across industrial automation, engineering, and manufacturing technology.
However, the discussions had not been finalised, and the final value, structure, and timing of any transaction could change if the companies reach an agreement.
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