Business
PTC COMPLETES DIVESTITURE OF KEPWARE AND THINGWORX BUSINESSES
Divestiture of Kepware Industrial Connectivity and ThingWorx IoT businesses enables PTC to increase focus on Intelligent Product Lifecycle visionUpdating
About this update from Ptc Inc.
[{"type":"text","content":"Divestiture of Kepware Industrial Connectivity and ThingWorx IoT businesses enables PTC to increase focus on Intelligent Product Lifecycle visionUpdating post-divestiture financial guidance for FY'26 and Q2'26Net after-tax proceeds from the divestiture will be used for share repurchases; Announcing $375 million accelerated share repurchase programBOSTON, March 16, 2026 /PRNewswire/ -- PTC (NASDAQ: PTC) today announced it has completed the previously announced sale of the company's Kepware® industrial connectivity and ThingWorx® Internet of Things (IoT) businesses to TPG, a leading global alternative asset management firm. \n \n \n \n \n \n \n \n\"We are pleased to complete the divestiture of our Kepware and ThingWorx businesses as we increase our focus on our Intelligent Product Lifecycle vision,\" said Neil Barua, President and CEO, PTC. \"We want to thank the teams moving over for their years of service, and we wish them well moving forward.\"Financial DetailsPTC received cash proceeds of $523 million upon closing (previously estimated at $525 million), reflecting closing adjustments of $42 million related to working capital and indebtedness (previously estimated at $40 million). Net after-tax transaction proceeds will be approximately $375 million (previously estimated at approximately $365 million), after the payment of divestiture-related costs of approximately $40 million (previously estimated at approximately $35 million) and cash taxes related to the divestiture of approximately $110 million (previously estimated at approximately $125 million).PTC will use the net after-tax proceeds for share repurchases and intends to enter into a $375 million accelerated share repurchase agreement in Q2'26, with final settlement expected in Q3'26.As expected, we are updating our guidance for cash flow, revenue, and EPS to account for the divestiture. There are no additional changes to our previous guidance provided on February 4, 2026.Full Fiscal Year 2026 and Second Fiscal Quarter Guidance$ in millions, except per share amounts % rounded to the nearest halfFY'26 Previous GuidanceFY'26 Guidance Excluding Kepware and ThingWorx3Q2'26Previous GuidanceQ2'26 Guidance Excluding Kepware and ThingWorx3Constant currency ARR excluding Kepware and ThingWorx (FY'26 Plan FX rates1) 7.5% to 9.5% growth7.5% to 9.5% growth8% to 8.5% growth8% to 8.5% g...