Schneider Electric to buy industrial software maker PTC for $23 billion

Schneider Electric, the electrical equipment maker that has thrived from the AI build-out, struck a $23 billion deal to buy industrial-design software company PTC at a decade-low valuation.

Following the deal announcement, RBC Capital downgraded its rating on PTC stock.

For beginners The price paid in an acquisition reflects the buyer's expectations for the target's future profits; a low valuation can signal weak growth prospects or strong bargaining power on the buyer's side.