Rockwell to take 8 percent stake in software maker PTC for $1 billion

 

[June 11, 2018]  (Reuters) - Rockwell Automation said on Monday it would buy an 8.4 percent stake in PTC for $1 billion as it looks to combine technologies such as internet of things, and augmented reality with its factory automation equipment and software.

As part of the deal, Rockwell will acquire 10.6 million newly issued PTC shares for $94.50 per share, to become its third-biggest shareholder.

The per-share price represents a premium of 8.6 percent to software maker PTC's close on Friday.

Rockwell Automation's chairman and Chief Executive Officer Blake Moret will join PTC's board after the deal closes, which is expected within the next two months, according to a joint statement.

Leveraging Rockwell's domain expertise with PTC's technology will help companies to capitalize on the promise of industrial Internet of Things (IoT), PTC Chief Executive Officer Jim Heppelmann said.

PTC offers a portfolio of computer-aided design modeling, product and service lifecycle management software products for manufacturers.

Rockwell — which makes electronic motor starters, relays and timers for industries — has been strengthening its capabilities in the so-called IoT, or technology that allows different devices and systems to communicate with each other over the internet.

Morgan Stanley & Co LLC was the financial adviser to PTC, while Goldman Sachs & Co LLC advised Rockwell.

Goodwin Procter LLP was PTC's legal adviser to PTC, while Foley & Lardner LLP advised Rockwell.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

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