Autodesk abandons acquisition of PTC, one of the potential largest deals in the software industry this year falls through
Autodesk has decided to abandon its acquisition plan for PTC, which could have become one of the largest mergers and acquisitions in the global software industry. Since the acquisition news was first reported on July 8, Autodesk's stock price has fallen by more than 10% at one point. As of the time of writing, Autodesk's stock price has rebounded by 3.45%, while PTC's stock price has dropped by 1.72%. Autodesk stated that it will continue to allocate capital through organic investments and complementary acquisitions, without specifically mentioning PTC. Analysts pointed out that the high transaction costs and the opposition from Starboard Value may be the main obstacles
According to informed sources, global software supplier Autodesk (ADSK.US) has decided to suspend its cash and stock acquisition plan for PTC Inc. (PTC.US). If completed, this deal could have become one of the largest mergers and acquisitions in the global software industry this year.
Due to the involvement of undisclosed business information, the sources requested anonymity. Notably, since the first report on July 8 regarding Autodesk's consideration of acquiring PTC, the company's stock price has fallen by more than approximately 10%. As of the time of writing, during intraday trading on the New York Stock Exchange, Autodesk's stock price rebounded by 3.45% to $290.54, corresponding to a total market value of over $62.1 billion; PTC's stock price fell by 1.72% to $190.59, with a current market value of approximately $22.861 billion.
In regulatory documents submitted to the U.S. Securities and Exchange Commission on July 14, Autodesk emphasized that the company's strategic focus remains unchanged, continuing to allocate capital through "organic investments, targeted acquisitions, and complementary mergers," but did not specifically mention PTC or other potential acquisition targets.
The documents also disclosed that the company will continue to advance its established stock repurchase plan. Earlier, activist investment firm Starboard Value invested in Autodesk earlier this year and pushed for board reforms due to disagreements over the company's performance and handling of accounting investigations. Starboard's core demand is to significantly enhance Autodesk's profit margins and reduce net operating expenses, a stance that has raised market doubts about the company's support for acquiring PTC.
Bloomberg Industry Research analyst Niraj Patel noted in a report on July 14 that although the deal faces minimal antitrust regulatory hurdles and could expand Autodesk's scale in core markets such as computer-aided design (CAD) and product lifecycle management (PLM), high transaction costs, financial constraints, and Starboard Value's opposition may become major obstacles.
PTC, established in the 1980s as an industrial software company, has products widely used in the design and manufacturing of complex products in fields such as aerospace, computers, and medical devices. The suspension of this acquisition occurs against the backdrop of accelerated consolidation in the industrial software industry, which is experiencing a demand growth period due to the proliferation of artificial intelligence technology
