PTC Stock Dives 5.4% After Autodesk Cancels Acquisition Talks

PTC shares fell 5.4% after Autodesk shelved a potential acquisition, citing a report from Bloomberg. Autodesk's stock rose, indicating relief from investors that the takeover was not pursued. PTC's shares had previously risen on reports of the acquisition, and the stock market overreacted to the news. The previous big move in PTC's shares was a 6.9% drop on news of potential acquisition talks with Autodesk. Analysts at Morgan Stanley noted that a combined entity could offer substantial benefits, including cost synergies and a stronger position in the manufacturing software market.

Autodesk Inc. (NASDAQ: ADSK) has decided to abandon its pursuit to acquire software firm PTC Inc. (NASDAQ: PTC), according to reports from Bloomberg [1]. The potential acquisition, which would have been one of the largest deals of the year, was shelved after Autodesk stated it remains focused on executing its strategic priorities, including "allocating capital to organic investment, targeted and tuck-in acquisitions" [2].

The decision to drop the acquisition comes after Autodesk's shares had fallen more than 10% since July 8, the day before Bloomberg first reported the company was considering an acquisition of PTC [1]. Autodesk's shares rose by 6% following the announcement, indicating relief from investors who prefer the company's focus on smaller acquisitions and share buybacks rather than a major transaction [1].

PTC's shares fell by 5.4% after the news broke, reversing the gains it had made following the initial reports of the potential acquisition [3]. The previous significant move in PTC's shares was a 6.9% drop on news of potential acquisition talks with Autodesk [3]. Analysts at Morgan Stanley noted that a combined entity could offer substantial benefits, including cost synergies and a stronger position in the manufacturing software market [3].

In a regulatory filing on Monday, Autodesk stated it will continue its share repurchase program and remains committed to driving long-term shareholder value through strategic priorities in cloud, platform, and AI technologies, while also optimizing sales and marketing efforts to achieve higher margins [2]. Autodesk's decision to focus on organic growth and targeted acquisitions aligns with its long-term strategic goals.

References:
[1] https://ca.finance.yahoo.com/news/autodesk-stock-rises-dropping-pursuit-122807427.html
[2] https://www.bloomberg.com/news/articles/2025-07-14/autodesk-is-said-to-drop-pursuit-of-software-firm-ptc
[3] https://www.gurufocus.com/news/2970147/autodesk-considers-acquiring-ptc-in-strategic-move-ptc-stock-news