Home · Technology · Oct 6 archive
Software startup Vinci raises $250 million at a $1.5 billion valuation
Confirmed
In Short: Jefferies noted in a report that while the deal presents a healthy valuation in a compressed market, AI disruption fears continue to affect software valuations.
French engineering firm Schneider Electric announced on Monday it would acquire US software company PTC for approximately $22.6 billion, marking its largest deal to date.
The acquisition aims to bolster Schneider's industrial software and artificial intelligence (AI) business by integrating PTC's product-design and lifecycle-management software into its offerings.
PTC, based in Boston, provides software solutions for designing, manufacturing, and servicing products across various sectors, with a growing demand for its AI-powered tools.
The deal would increase Schneider's software-as-a-service revenue to about 24% of its total group revenue, accelerating its transition from electrical equipment and automation into higher-growth, recurring-revenue software.
However, Schneider's shares fell nearly 10% in early Paris trading as investors considered the size of the acquisition, the premium offered for PTC's shares, and the uncertain market environment for software companies due to AI-related concerns.
Berenberg analyst Nay Soe Naing told Reuters the deal offered a healthy valuation amid a challenging investor sentiment across the software space.
In a conference call, Blum highlighted the critical role of data in extracting value from AI, emphasizing the need for closer links between data and software used to contextualize it.
What's confirmed
- French engineering firm Schneider Electric announced on Monday it would acquire US software company PTC for approximately $22.6 billion, marking its largest deal to date.
- The acquisition aims to bolster Schneider's industrial software and artificial intelligence (AI) business by integrating PTC's product-design and lifecycle-management software into its offerings.
- PTC, based in Boston, provides software solutions for designing, manufacturing, and servicing products across various sectors, with a growing demand for its AI-powered tools.
- The deal would increase Schneider's software-as-a-service revenue to about 24% of its total group revenue, accelerating its transition from electrical equipment and automation into higher-growth, recurring-revenue software.
- However, Schneider's shares fell nearly 10% in early Paris trading as investors considered the size of the acquisition, the premium offered for PTC's shares, and the uncertain market environment for software companies due to AI-related concerns.
- Berenberg analyst Nay Soe Naing told Reuters the deal offered a healthy valuation amid a challenging investor sentiment across the software space.
- In a conference call, Blum highlighted the critical role of data in extracting value from AI, emphasizing the need for closer links between data and software used to contextualize it.
What's still developing
- "AI disruption fears are still weighing on software valuations, which allows acquiring PTC at a decade low valuation but could still weigh on Schneider post deal," Jefferies said in a note to investors.