The last word? PTC+Rockwell=BFFs for … ever?

Nov 24, 2021 | Hot Topics

After yesterday’s kerfuffle about an S-3 filing (where I interpreted intentions incorrectly here and tried to fix it all here), PTC and Rockwell came out with a statement that reads, in part

Rockwell has made no announcement that it is “cutting financial ties with PTC” or that it is selling its entire investment in PTC. The parties are continuing to bring value-added solutions to manufacturing customers through their strategic alliancePTC and Rockwell have been parties to a Strategic Alliance Agreement since 2018. In connection with that agreement, Rockwell made an approximately $1 billion investment in PTC common stock pursuant to a Securities Purchase Agreement (Purchase Agreement). The Purchase Agreement contemplates that Rockwell would have flexibility to sell its PTC shares, subject to certain volume and time limitations. Under the Purchase Agreement, Rockwell also has a right to designate a representative to the PTC Board of Directors as long as Rockwell maintains at least a 5% equity position in PTCAt Rockwell’s investor day held on November 10, 2021, Blake Moret, CEO of Rockwell, stated that the Rockwell/PTC relationship is as “strong as ever” and that he intended to remain on the PTC Board of Directors.

So what we saw yesterday was a filing that enables Rockwell to sell its shares if it wants to, and not an intention to actually sell anything now/soon. Though it is keeping that door open …

As I wrote yesterday, this partnership seems to be working well in the market –regardless of who owns which shares– and it would be foolish to discontinue the co-development/go-to-market part of the PTC/Rockwell relationship. Rockwell owning PTC shares gave them an actual, financial stake in the success of the partnership, making it more than a press release/photo op. It certainly appears to have done that.

Anyway, stand down. Nothing new here.