PTC Finalizes Divestiture of Kepware, ThingWorx

PTC has completed the previously announced sale of the company’s Kepware industrial connectivity and ThingWorx Internet of Things (IoT) businesses to TPG, a global alternative asset management firm.

"We are pleased to complete the divestiture of our Kepware and ThingWorx businesses as we increase our focus on our Intelligent Product Lifecycle vision,” says 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 Details

PTC 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, PTC is updating guidance for cash flow, revenue, and EPS to account for the divestiture. There are no additional changes to previous guidance provided on February 4, 2026.

For additional financial details, click here.

Sources: Press materials received from the company and additional information gleaned from the company’s website.