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Schneider Electric Stock Falls 7% After $22.6B PTC Deal
Why is Schneider Electric stock down today?
Schneider Electric (SU.PA) stock fell about 7% on Monday after it agreed to buy US software maker PTC for $22.6B in cash, as investors questioned the high price and debt.
Key numbers
| Deal value (equity) | $22.6B$23.7B including debt |
|---|---|
| Offer per PTC share | $205+42.3% premium |
| Schneider shares (Mon) | -7%nearly -10% in early trading |
| PTC shares (Mon) | +34%from $144.03 close |
| New financing | €16–17B debtplus €5–6B new shares |
| Yearly cost savings | €250Mby year three; ~€800M revenue synergies |
What happened
Schneider Electric (SU.PA) stock fell about 7% on Monday after it agreed to buy US software maker PTC for $22.6B in cash, as investors questioned the high price and debt. It will pay $205 a share, 42% above PTC's last closing price, and PTC shares jumped about 34%. Schneider plans to fund the deal with €16–17 billion of new debt and €5–6 billion of new shares. Schneider's shares were down nearly 10% in early Paris trading, wiping about €15 billion off its value.
Why it matters
Schneider Electric is making its biggest purchase ever, betting that industrial software and artificial intelligence (AI) will grow into a larger part of its business. Investors disliked the high price, the extra debt and the new shares, which shrink each existing owner's slice of the company. Analysts say worries about AI hurting software firms made PTC cheaper, but could keep weighing on Schneider's stock.
Who this affects
- MarketmixedMedium impact
- European software stocks rose; Schneider holders face a sharp drop.
- CompanybearishMedium impact
- Schneider shareholders face more debt, new shares and paused buybacks.
- CompetitorsbullishLow impact
- Software rivals Dassault and Nemetschek rose as takeover expectations reset.
- IndustrybullishMedium impact
- Industrial software owners may attract more takeover interest.
Schneider Electric vs PTC, Dassault Systèmes, Nemetschek
How we got here
Report says Schneider is close to a deal near $20 billion for PTC.
Both boards unanimously approve the $205-a-share cash deal, announced Monday.
Schneider fell nearly 10% early in Paris; later reports showed a drop above 7%.
PTC shares jump about 34% on the 42% premium.
What to watch
- PTC shareholder vote and regulatory approvals needed before the deal can closeQ3 2027
- Schneider pauses buybacks in 2027–2028, then resumes to finish its €2.5–3.5B program by 20302027
Educational content only. Not investment advice.
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