PTC has sold its industrial connectivity and Industrial IoT businesses to the investment firm TPG Capital. The sale includes PTC’s Kepware industrial connectivity and ThingWorx IoT platforms, with TPG paying $600 million for the two assets. The definitive agreement was announced November 5, and is expected to close in the first half of calendar year 2026.

TPG is a global alternative asset management firm, headquartered in San Francisco, with a major second office in Fort Worth, Texas. The company also has a significant presence in Europe. TPG plans to provide additional capital and expertise to the businesses, with the goal of accelerating growth. The investment firm sees a “generational opportunity” to evolve manufacturing using solutions that bridge operational and information technology gaps.

Boston-based PTC will now intensify its focus on its remaining core businesses. The company is centring resources on its Intelligent Product Lifecycle vision. Its current core offerings include CAD, PLM, ALM, and SLM. PTC is prioritising the embedding of AI capabilities across its platforms. It is also focused on an ongoing adoption of SaaS (Software-as-a-Service) across its core businesses.

PTC is primarily focused on customers in discrete manufacturing industries, including: Lockheed Martin, Northrop Grumman, Raytheon (RTX), Boeing, Airbus, BAE, Rolls-Royce, and NASA in defence and aerospace; Harman and Bertrandt in automotive and transportation, and across the industrial machinery and equipment sector, including companies such as Flowserve and Heidelberg.

The global industrial automation market has recently faced challenges, with market growth expected to be muted through 2025. This is partly due to end-industries scaling back capital expenditures. High component inventories from a “bullwhip effect” have also contributed to sluggish growth. After 2025, market analysts expect strong expansion to return through 2030.

“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,” said 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 continued, “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.”