Industrial automation and information solutions provider Rockwell Automation Inc. has agreed to make a $1 billion equity investment in software provider PTC as part of a strategic partnership that will include technical collaboration and global go-to-market initiatives.
Rockwell will acquire an 8.4% stake in PTC at a price of $94.50 per share. The buyer plans to fund the investment through a combination of cash on hand and commercial paper.
Blake Moret, chairman and CEO of Rockwell, will join PTC's board after the closing of the transaction, which is expected within 60 days subject to customary conditions and regulatory approvals.
PTC plans to use the proceeds from the investment to repurchase stock to offset dilution.
Goldman Sachs & Co. LLC is serving as financial adviser and Foley & Lardner LLP is legal adviser to Rockwell Automation. Morgan Stanley & Co. LLC is providing financial advice and Goodwin Procter LLP is counsel to PTC.
Rockwell also announced a $300 million increase in its share repurchase program for fiscal year 2018 to $1.5 billion.
