PTC (NASDAQ:PTC) announced that on March 16, 2026 it finalized the previously disclosed sale of its Kepware industrial connectivity unit and ThingWorx IoT platform to an affiliate of TPG in a cash transaction valued at $523 million. The divestiture is intended to help the company concentrate more closely on its Intelligent Product Lifecycle strategy.
After accounting for approximately $40 million in transaction-related expenses and about $110 million in associated cash taxes, PTC expects net proceeds of roughly $375 million after tax. The company said it plans to allocate the entire amount toward share repurchases.
As part of this plan, PTC intends to execute a $375 million accelerated share buyback during the second quarter of fiscal 2026.
The company also updated its outlook for both fiscal 2026 and the second quarter, reflecting lower projected revenue and free cash flow following the divestiture. However, PTC now expects a higher GAAP earnings per share range, partly due to an estimated $464 million gain related to the sale and other non-recurring divestiture effects.
More about PTC
PTC is a U.S.-based software company listed on Nasdaq that develops digital solutions for manufacturers and industrial organizations. Its products focus on areas such as product lifecycle management, industrial connectivity, and Internet of Things platforms that support data integration and digital transformation across production and product operations.
Historically, its portfolio included the Kepware industrial connectivity platform and the ThingWorx IoT suite, both designed to help industrial companies connect machines, gather operational data, and accelerate digitalization initiatives.