French industrial technology company Schneider Electric has agreed to acquire Boston-based software company PTC for about $22.6 billion in cash, marking one of the biggest software deals of 2026.

Schneider will pay $205 per PTC share, representing a premium of about 42% over PTC’s previous closing price. The transaction is expected to close by the third quarter of 2027, subject to regulatory and other approvals.

PTC develops industrial design and engineering software used by manufacturers and other businesses. Schneider said the acquisition will strengthen its software and artificial intelligence capabilities as companies increasingly connect industrial operations with digital systems.

The deal also puts PTC at the center of a major cross-border technology transaction. PTC shares surged after the announcement, while Schneider shares fell as investors assessed the size of the acquisition and the challenges of integrating another major software business.

The acquisition reflects the growing push by major industrial companies to combine software, artificial intelligence and physical infrastructure, particularly as manufacturers invest more heavily in digital transformation.