PTC To Acquire ServiceMax For Around $1.46 Bln

(RTTNews) - PTC Inc. (PTC), a computer software and related services provider, said on Thursday that it has inked a definitive deal to buy privately held ServiceMax, for around $1.46 billion in cash on a debt-free, cash-free basis, from an entity majority owned by Silver Lake.

ServiceMax, cloud-native, product-centric field service management or FSM software, is anticipated to yield around $160 million in ARR for PTC's second quarter of 2023. ServiceMax's FSM expertise will complement PTC's entire digital thread portfolio.

The purchase price will be funded in two stages - $808 million at closing, and $650 million paid in October 2023, the company said in a statement.

The transaction, expected to be closed in early 2023, will be funded with cash on hand, borrowings under PTC's existing credit facility, and a new $500 million committed term loan.

PTC is trading down by 3.05 percent at $126.47 per share on the Nasdaq.