Breaking: PTC to Acquire Onshape for $470M

It’s been long suspected that Onshape would eventually land in the hands of a larger enterprise product development (or non-product development) company — that day is here. PTC has just announced the acquisition of Onshape “for approximately $470 million, net of cash acquired.”

Just breaking. Stay tuned for more…

Here’s the letter from PTC CEO, Jim Heppelmann:

October 23, 2019

Dear PTC Customers and Partners,

I am excited to share with you that PTC has signed a definitive agreement to acquire Onshape, the first Software as a Service (SaaS) product development platform that unites robust computer aided design (CAD) with powerful data management and collaboration tools. The company was founded by CAD legends, including Jon Hirschtick, John McEleney, and Dave Corcoran, all inventors of and former executives at SolidWorks. Jon will assume a senior role leading the Onshape business at PTC and will report directly to me when the acquisition closes, which we expect to happen in November.

As you know, most software industries have embraced the SaaS model because it lowers cost of ownership and accelerates the introduction of new capabilities into the market. SaaS eliminates the need for costly server hardware and ensures that users are always current with the latest software with no need for administrators to implement patches or perform regular upgrades. Onhape is an amazing product – I trust you will be as impressed by its many breakthroughs as I have been.

PTC is acquiring Onshape because we have a deep commitment to providing innovative technology that drives business value and enhances your competitive position. With this strategic acquisition, PTC is doubling down on CAD and PLM. We will give customers the ability to choose between leading SaaS (Onshape) and on-premises (Creo and Windchill) deployment options per their preference.

We will be sharing more details about what our acquisition of Onshape means for you in the days and weeks to come, but I want you to take away two important messages:

1. Creo and Windchill represent PTC’s core business. Both products are performing well, with growing market share. PTC will continue to invest in these critical products indefinitely, and you will continue to see a steady stream of new performance and functionality enhancements for many years to come.
2. If, and when, you’re ready to adopt a SaaS platform, PTC will be there with a feature-rich, market-proven Onshape solution for your product development needs.

For more information, please refer to our press release and FAQ document [PDF].

Jim Heppelmann
President & CEO PTC

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