Schneider Electric OTCMKTS: SBGSY just made the biggest bet in its history. On Oct. 5, the French energy management giant agreed to buy PTC NASDAQ: PTC for about $22.6 billion in cash.
From a technical perspective, PTC Inc. (PTC) is looking like an interesting pick, as it just reached a key level of support. PTC's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
PTC Inc. (PTC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Schneider Electric said it has entered into a definitive agreement to acquire PTC NASDAQ: PTC for $205 per share in cash, a transaction that implies an enterprise value of about €21 billion and is intended to expand Schneider's industrial software, artificial intelligence and digital capabilities.
Schneider Electric, the French energy technology company, has agreed to buy PTC Inc (NASDAQ:PTC), the Boston-based industrial software maker, for $205 a share in cash, valuing its equity at about $22.6 billion. The deal, announced on Monday, implies an enterprise value of $23.7 billion, which adds net debt to the equity price, and gives PTC shareholders a 42.3% premium to its last closing price.
France's Schneider Electric shares tumbled about 9% on Monday after the company announced plans to acquire US industrial software group PTC for $22.6 billion, with investors likely questioning the hefty premium and the debt burden needed to fund the deal. Schneider said it expects to complete the all-cash acquisition in the third quarter of 2027 at $205 per PTC share.
The acquisition aims to create one of the largest industrial-software portfolios, Schneider said.
Boston-based PTC has a market value of $15.63 billion, according to LSEG data.
France's Schneider Electric is nearing a deal to buy US software group PTC for about $20 billion, the Financial Times reported on Sunday citing people with knowledge of the matter.
PTC Inc. trades at a depressed valuation after a 37% sell-off, despite underlying ARR growth of 9% and raised full-year guidance. Reported revenue masks business strength; deferred ARR for fiscal 2027 is double last year's level, and improved sales execution is driving retention and competitive wins. New pricing structures embed 3%-4% annual increases, providing a gradual tailwind as contracts renew over the next several years.
PTC Inc. (PTC) reported earnings 30 days ago. What's next for the stock?
PTC Therapeutics offers a compelling risk-reward profile, with its valuation not fully reflecting the upside from Sephience and potential ST-920 approval. Sephience, PTCT's lead asset, has driven rapid revenue growth, accounting for 63% of product revenue and expanding across major global markets. ST-920, acquired from Sangamo, is a late-stage gene therapy for Fabry Disease; FDA approval could significantly enhance PTCT's valuation.