Autodesk focused on strategy, signals deal with PTC will not happen

Design software maker Autodesk ADSK said in a regulatory filing on Monday that it plans to pursue its "strategic priorities" and make only "targeted and tuck-in acquisitions," signaling there will be no deal with software firm PTC PTC.

San Francisco-headquartered Autodesk's stock lost nearly 12% late last week amid speculation that it was considering buying computer software and services company PTC Inc.

Monday's one-paragraph filing with the U.S. Securities and Exchange Commission did not mention Boston-based PTC by name but left no doubt that any deal that might have been in the works to combine the two companies is now off the table.

"We are confident in our plans to drive long-term shareholder value," the company said, adding it will pursue its established strategic priorities in cloud, platform, and AI.

It will also allocate capital to organic investment, targeted and tuck-in acquisitions, and to continuing its share repurchase program as free cash flow grows, the filing says.

Autodesk investors welcomed the news, sending the stock up nearly 7% in pre-market trading after it closed at $280.39 on Friday. PTC's stock price, meanwhile, dropped 5% in pre-market trading after having jumped some 10% last week.

Autodesk's signal that there will be no deal with PTC scuttles what might have been one of the year's biggest mergers, potentially valued up to $30 billion.

Investors had been hoping for months that M&A markets might catch fire in the second half of the year after dealmakers urged caution in the first half against a backdrop of uncertainty created by U.S. President Donald Trump's tariff and tax policies as well as geopolitical tensions.

Autodesk has faced pressure from activist investor Starboard Value this year, and in April it added two newcomers to its board.