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Schneider Electric offers 205 dollars a share for PTC

Schneider Electric agreed to acquire PTC in an all-cash transaction valuing the US industrial software company’s equity at 22.6 billion dollars. Shareholders are offered 205 dollars per share. The French group plans new equity and debt to fund the purchase. Completion is targeted for the third quarter of next year, subject to shareholder and regulatory approvals.

Economics & Markets··Midday
An engineer compares a physical gearbox with its three-dimensional design on screen.

PTC shareholders are offered cash

French energy technology group Schneider Electric agreed to acquire PTC, the US developer of industrial product-design and engineering software. The cash offer is 205 dollars per share and values PTC’s equity at about 22.6 billion dollars. Both companies’ boards approved the agreement unanimously.[1], [2]

The price is 42.3 per cent above PTC’s last closing price. Including the wider enterprise valuation, the transaction amounts to 23.7 billion dollars. PTC serves more than 30,000 customers globally and generated 2.4 billion euros of revenue in the previous calendar year.[1]

New equity and debt fund the purchase

Schneider plans permanent financing through approximately 5–6 billion euros of new equity and 16–17 billion euros of new debt. Morgan Stanley and Société Générale have provided a committed bridge facility securing the cash consideration. Management also anticipates a pause in share repurchases during the next two years.[1]

Shareholder and regulatory approvals remain

Completion requires approval by holders of a majority of PTC’s outstanding shares and regulatory permissions. The companies target the third quarter of next year. Schneider expects annual cost savings of 250 million euros by the third year after completion and around 800 million euros in revenue synergies. These are management forecasts for the combined business.[1]

References

  1. News sourceSchneider ElectricSchneider Electric agrees to buy PTC for 22.6 billion dollars↩1↩2↩3↩4
  2. News sourceETManufacturingSchneider Electric offers 205 dollars a share for PTC↩
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