Separating IoT Business and Buying Back Shares Worth 1 Trillion Won: A Choice by a U.S. Software Company

PTC Inc., the industrial software company, has completed the sale of its Kepware industrial connectivity and ThingWorx IoT businesses to private equity firm TPG, securing approximately $523 million in cash proceeds. On the basis of an estimated $375 million of net cash (roughly KRW 500 billion) after taxes, the company will kick off a $375 million accelerated share repurchase in the second quarter. It also plans to buy back $1.1–$1.3 billion of its own shares (around KRW 1.5–1.7 trillion) over the full 2026 fiscal year.

Reflecting this divestiture, PTC is lowering its 2026 fiscal‐year guidance for operating cash flow to about $880 million and for free cash flow to about $850 million. At the same time, it expects to recognize a gain on sale of roughly $464 million (around KRW 600 billion) and will sharpen its focus on an “Intelligent Product Lifecycle” strategic agenda.

Earlier in February, PTC reported first‐quarter fiscal‐2026 revenue of approximately $686 million, surpassing Wall Street estimates and prompting an upward revision to its full‐year outlook. The company is also realigning its leadership, with Jennifer Dierickx assuming the role of chief financial officer effective January 1, 2026.

Founded in 1985 and headquartered in Boston, PTC delivers industrial software solutions—including CAD and PLM—for product design and lifecycle management, helping global manufacturers in sectors such as automotive, electronics and aerospace accelerate their digital transformations. The market for industrial software in manufacturing is rapidly adopting cloud, SaaS and AI technologies, driving intensified competition and portfolio reshuffling among major vendors.