U.S. Software Company Divests IoT Business and Buys Back Shares

PTC Inc. announced that it has completed the sale of its industrial connectivity solution, Kepware, and its IoT platform, ThingWorx, to private equity firm TPG, resulting in gross proceeds of approximately $523 million and net after-tax cash of about $375 million.

The company plans to deploy the entire net proceeds toward a share-repurchase program, beginning an accelerated buyback of roughly $375 million in the second quarter of fiscal 2026, and targeting a total repurchase authorization of $1.125 billion to $1.325 billion for the full year.

Reflecting this divestiture, PTC has revised its fiscal 2026 targets for operating cash flow and free cash flow to approximately $880 million and $850 million, respectively, and expects to record a GAAP gain on disposal of about $464 million.

In its first-quarter fiscal 2026 results announced in February, PTC delivered year-over-year growth in both revenue and profit, raised its full-year revenue and non-GAAP EPS guidance, and maintained its outlook for ARR growth excluding ThingWorx and Kepware.

The company also completed its executive realignment, with Jennifer DiRico assuming the role of chief financial officer effective January 1.

Founded in 1985 and headquartered in Boston, PTC is an industrial software provider that supports manufacturers’ product design and lifecycle management through CAD and PLM solutions such as Creo and Windchill.

With the divestiture of ThingWorx and Kepware—widely used for industrial IoT and on-site equipment data collection—PTC is now refocusing its strategy on intelligent product lifecycle solutions.