Shares of Autodesk (NASDAQ:ADSK) jumped 6% following reports that the company has decided to halt its efforts to acquire PTC Inc. (NASDAQ:PTC).
The San Rafael-based software giant has reportedly stepped back from what would have been a significant cash-and-stock deal with PTC, which currently has a market value of $23.2 billion, compared to Autodesk’s $60 billion valuation. According to Bloomberg sources familiar with the discussions, Autodesk has shelved the acquisition plans.
In a filing with regulators on Monday, Autodesk emphasized its ongoing focus on strategic initiatives, including “allocating capital to organic investment, targeted and tuck-in acquisitions.” Although the company did not directly mention PTC, it confirmed that it will maintain its existing share repurchase program.
Autodesk’s stock had dropped over 10% starting July 8, the day before news first emerged about the potential PTC acquisition. The positive market response on Monday indicates investors may favor Autodesk’s strategy of smaller acquisitions combined with buybacks over a large-scale purchase.
The company reiterated its dedication to long-term shareholder value, highlighting investments in cloud, platform, and AI technologies, along with efforts to improve sales and marketing efficiency to boost profit margins.
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