What's Going On With Autodesk Shares Today?

Autodesk Inc. ADSK shares are trading higher Monday after the company officially announced it will no longer pursue the acquisition of PTC Inc.

What To Know: The move comes after weeks of speculation following reports that Autodesk was considering a major cash-and-stock deal for the industrial software firm. Investors reacted positively to the decision, reversing some of the pressure that had weighed on Autodesk stock since the initial reports surfaced.

Shares of Autodesk had fallen over 10% since July 8, the day before Bloomberg reported that the company was exploring a potential acquisition of PTC. The proposed deal would have ranked among the largest in the software sector this year, potentially reshaping Autodesk’s strategic direction. On Friday, Autodesk shares closed at $280.39, giving the company a market value of around $60 billion. PTC's market capitalization stands at roughly $23.2 billion.

In a regulatory filing on Monday, Autodesk confirmed that it would remain focused on its existing strategic priorities. These include investing in its core business, pursuing smaller targeted acquisitions, and continuing its share repurchase program. The company made no mention of PTC or any other acquisition targets in the filing, signaling that it intends to stick with its organic growth plans rather than pursuing large-scale deals.

PTC, founded in the 1980s, specializes in software that supports manufacturers in designing complex products such as aircraft, electronics, and medical devices. A deal between Autodesk and PTC would have marked a significant consolidation in the industrial software space, a sector expected to grow with the rising adoption of artificial intelligence. However, Autodesk's decision to walk away suggests that the company is opting to prioritize financial discipline and shareholder returns over high-risk acquisitions.

ADSK Price Action: Autodesk shares were up 5.50% at $295.82 at the time of writing, according to Benzinga Pro.

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