Schneider Electric has agreed to buy American industrial software company PTC for $22.6 billion in an all-cash deal announced on Monday. The French multinational firm aims to cement its position as a primary provider of industrial power and datacenter infrastructure.
Schneider Electric's market cap has more than doubled over the past four years. This financial growth stems from an artificial intelligence boom that has driven unprecedented demand for datacenter power and cooling infrastructure.
Founded in 1985, PTC developed software for computer-aided design and lifecycle management tools for industrial products and applications. The new acquisition positions Schneider Electric to capitalize on the growth of datacenters used to train and run artificial intelligence models at scale.
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Since ChatGPT launched the artificial intelligence arms race in late 2022, datacenter power and design requirements have changed significantly. Forty-kilowatt air-cooled racks have shifted to 250kW liquid-cooled systems requiring denser power delivery and complex thermal management systems.
Schneider has completed several strategic acquisitions to address growing complexity and supply chain challenges in datacenter deployments. In late 2024, Schneider invested roughly $850 million for a 75 percent stake in Motivair, a leading producer of liquid-cooling components such as cold plates and coolant distribution units. Schneider expects to acquire the remaining portion of Motivair in 2028.
The company also spent $3.1 billion in June to acquire industrial data operations vendor Cognite. Purchasing PTC adds key design capabilities and expands lifecycle management offerings for users of Schneider equipment.
Software will automate power systems
Schneider CEO Olivier Blum spoke to investors on Monday about the strategic direction of the company. Blum explained that owning PTC and Cognite will allow the company to introduce software-defined automation into power systems early in development to improve efficiency, with datacenters serving as an initial target.
Blum stated that computer-aided design engineering is critical at the design stage to help customers design products, machines, processes, and energy systems. The transaction represents Schneider Electric's largest acquisition ever.
The deal remains subject to regulatory approval and is not expected to close until late next year.
