TPG to Buy PTC’s IoT and Industrial Connectivity Businesses

PTC and TPG, a global alternative asset management firm, announces a definitive agreement under which TPG will acquire PTC’s Kepware industrial connectivity and ThingWorx Internet of Things (IoT) businesses.

The transaction would provide the businesses with additional capital and expertise to accelerate growth to meet the connectivity and data needs of manufacturing organizations, PTC reports. TPG will invest in the businesses through TPG Capital, the firm’s U.S. and European private equity platform.

“We’re pleased to reach this agreement with TPG as we increase our focus on delivering our Intelligent Product Lifecycle vision for customers through our core CAD, PLM, ALM, and SLM offerings and the ongoing adoption of AI and SaaS,” says Neil Barua, president and CEO, PTC. “With our resources and investments concentrated in these areas, we are confident we can help our customers address their most pressing challenges by enabling them to fully leverage the value of their product data and to transform each stage of the product lifecycle.”

Barua adds, “Kepware and ThingWorx are leading products, and we are pleased that they are gaining an outstanding partner in TPG that is committed to their future growth and to meeting the evolving needs of customers. We look forward to continuing to work with these businesses as they scale and evolve under TPG’s ownership.”

“There is a generational opportunity to evolve and progress manufacturing through solutions that bridge the gap between operational and information technology,” says Art Heidrich, partner at TPG. “Kepware and ThingWorx are driving the digital transformation of the shop floor, helping customers manage and improve their production processes. We are excited to partner with PTC and look forward to supporting the next chapter of growth for these software platforms.”

Kepware facilitates connectivity between industrial automation devices and applications, acting as a communication platform that enables data exchange and integration across a range of industries including manufacturing, oil and gas, and utilities to simplify the process of collecting, monitoring, and controlling data from multiple sources. ThingWorx is an IoT platform for industrial enterprises that connects systems, analyzes data, and enables the remote management of devices through a secure and scalable architecture.

The transaction is expected to close in the first half of calendar year 2026, subject to the satisfaction of regulatory approvals and other closing conditions.

Centerview Partners is serving as exclusive financial advisor, and Simpson Thacher & Bartlett LLP and Choate Hall & Stewart LLP are serving as legal advisors to PTC in connection with the sale of the businesses to TPG. Evercore is serving as lead financial advisor to TPG, and Barclays is also serving as financial advisor. Ropes & Gray LLP is serving as legal advisor to TPG.

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