The French engineering company has agreed to pay $205 for each PTC share in an all cash deal.

That represents a 42.3 percent premium over PTC’s previous closing share price and gives the company an enterprise value of about $23.7 billion. 

The deal will give Schneider stronger access to industrial software and artificial intelligence tools. PTC makes software used by companies to design, manufacture and maintain products across different industries.

Schneider already operates heavily in industrial automation, energy management and technology used by data centres.

On paper, the combination makes sense. Schneider gets a larger software business, while PTC gets access to a much bigger industrial company and its global customer base.

But a large acquisition does not automatically create a successful business.

This is where many companies can make a costly mistake.

Buying another company can look like a quick way to enter a new market, gain new customers or acquire new technology.

The real challenge begins after the deal is completed.

The two companies must work together without losing the strengths that made each one valuable.

Their systems, teams, customers and ways of working may be different.

If the integration is poorly handled, a company can spend billions on an acquisition and still struggle to get the value it expected.

There is also the question of price.

Schneider is paying a large premium to take control of PTC.

That means the combined business has to perform well enough to justify the money spent. Investors clearly have questions, with Schneider shares falling sharply in early trading after the deal was announced.

The lesson for businesses is simple.

Growth should not be measured only by how much a company buys.

Before making a major acquisition, leaders need to understand what they are buying, why they need it, how it will fit into the existing business and how long it may take to produce results.

Businesses that are considering expansion can use research, customer data and financial analysis to make better decisions before committing large amounts of money.

Auxi Sherpa⁠ supports that process through business research, market intelligence and systems that help businesses organize information before making important growth decisions.

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