Autodesk stock rises after dropping pursuit of PTC acquisition

Investing.com -- Autodesk (NASDAQ: ADSK) stock rose 6% after Bloomberg reported that the company has abandoned its pursuit to acquire software firm PTC Inc. (NASDAQ: PTC).

The San Rafael, California-based design software provider has decided to shelve its potential cash-and-stock deal for PTC, according to people familiar with the matter cited by Bloomberg. The acquisition would have been one of the largest deals of the year, with PTC currently holding a market capitalization of $23.2 billion compared to Autodesk’s $60 billion valuation.

In a regulatory filing Monday, Autodesk stated it remains focused on executing its strategic priorities, including "allocating capital to organic investment, targeted and tuck-in acquisitions." The company did not specifically mention PTC in its statement but confirmed it will continue its share repurchase program.

Autodesk shares had previously fallen more than 10% since July 8, the day before Bloomberg first reported the company was considering an acquisition of PTC. The market’s positive reaction today suggests investors may prefer Autodesk’s focus on smaller acquisitions and share buybacks rather than a major transaction.

The company reaffirmed its commitment 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.

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