‘The acquisition of PTC represents an important step forward in our ambition to lead the new era of energy and industrial intelligence,’ says Schneider Electric’s CEO Olivier Blum.
Schneider Electric CEO Olivier Blum is bullish that his company’s blockbuster $22.6 billion acquisition of software standout PTC, announced on Monday, will enable Schneider to create the “next generation” of industrial AI.
“The acquisition of PTC represents an important step forward in our ambition to lead the new era of energy and industrial intelligence,” said Blum in a post on LinkedIn.
“By connecting and contextualizing data across the lifecycle of products and assets, we will create a unique digital thread for the next generation of Industrial AI, helping customers optimize their systems with greater intelligence from design and build, to operate and maintain,” he explains.
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The combination of Schneider and PTC will create the “industry’s most complete software and AI powerhouse and highest-quality portfolio” that bridges the physical and digital worlds.
The deal expands Schneider’s total addressable market in industrial software by 3X, according to the company.
Details On Schneider’s $22.6 Billion Acquisition Of PTC
The deal is an all-cash transaction at $205 per share for 100 percent of the share capital of PTC, which values the company’s equity at $22.6 billion.
PTC is a global provider of complex industrial product design, engineering and data management with over 30,000 customers globally.
Its computer-aided design (CAD), product lifecycle management (PLM), application lifecycle management (ALM) and service lifecycle management (SLM) capabilities help customers design complex physical products, manage their product and engineering data throughout the entire lifecycle
PTC complements Schneider’s industrial AI data foundation by adding the critical product and engineering data fabric to its existing foundation of process and energy data.
“The world is entering a new era of energy and industrial intelligence, driven by the convergence of the new energy landscape and the acceleration of digitalization and AI, fundamentally reshaping customer needs,” said Schneider’s CEO.
“As industrial AI moves beyond digital applications and is increasingly embedded in physical products and machines, processes and energy systems, new opportunities are emerging across the lifecycle,” Blum said. “The PTC teams have established an outstanding track record of growth, innovation and customer success.”
New Innovation On The Way
Blum said by acquiring PTC, Schneider Electric will create a “leading, scaled, open and interoperable industrial software and AI franchise,” that drives business outcomes for customers from any system.
The deal allows Schneider Electric to incorporate upstream resources into its model, bridging the physical and digital worlds, from design and build to operate and maintain. It will help clients design faster, build right the first time, operate more efficiently and continuously improve the next generation of products and systems.
Additionally, PTC adds the intelligence on how products are designed and built to Schneider Electric’s operational and energy intelligence expertise—creating a unified AI-ready data foundation spanning products and machines, processes and energy systems, Blum said.
“This is an important step forward in our ambition for Schneider Electric to lead the new era of Energy and Industrial Intelligence and deliver greater value to our customers,” the CEO said.
Schneider Electric’s stock was down 10 percent Monday, trading at $61.32 per share.
