Schneider Electric expands its software portfolio again! Plans to spend over $20 billion to acquire US engineering software developer PTC (PTC.US)

According to Jin Zhitong Finance APP, Schneider Electric is reportedly close to reaching a deal to acquire U.S. engineering software developer PTC (PTC.US) for more than 20 billion U.S. dollars, according to a person familiar with the matter. The person said the deal could be announced as early as Monday morning, adding that negotiations between the two companies are still ongoing, and it is not yet certain that a final agreement will be reached.

If the deal is completed, this will become the largest transaction in Schneider Electric’s history. The deal will further strengthen the French engineering company’s acquisitions in the software sector. In June this year, Schneider Electric agreed to acquire Cognite Holding, a private company that mainly provides artificial intelligence (AI) software and industrial data services.

Schneider Electric was previously known for industrial components such as fuses and circuit breakers. Now, the company is building the backbone infrastructure for data centers, offering a range of products including cooling equipment, server racks, and key power distribution devices. PTC provides software solutions for product design, manufacturing, and maintenance to multiple industries, also benefiting from the growing demand for its AI-driven tools.

The booming demand for data centers—especially from the U.S.—is driving Schneider Electric’s performance and has become a growing source of revenue, offsetting some of the weakness in the traditional electrical equipment market. In July, after announcing record half-year results, Schneider Electric raised its revenue outlook for the full year, betting that its core industrial software and AI-driven tools will continue to see strong demand.