PTC : Rockwell Didn't Say Cutting Financial Ties With PTC Or Selling Entire Investment In PTC

(RTTNews) - Rockwell Automation (ROK) has made no announcement that it is "cutting financial ties with PTC" or that it is selling its entire investment in PTC. The companies are continuing to bring value-added solutions to manufacturing customers through their strategic alliance, PTC Inc. (PTC) said in a statement On Tuesday.

The companies issued a joint statement in response to a research report published by Berenberg Capital Markets Tuesday morning incorrectly stating that Rockwell is "cutting financial ties with PTC" and that "it was announced Monday that Rockwell will be selling its entire stake, an 8.98% ownership, in PTC." Both statements are incorrect and Berenberg has since issued a retraction.

PTC and Rockwell have been parties to a Strategic Alliance Agreement since 2018. In connection with that agreement, Rockwell made an about $1 billion investment in PTC common stock pursuant to a Securities Purchase Agreement. The Purchase Agreement contemplates that Rockwell would have flexibility to sell its PTC shares. 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 PTC.

On November 8, 2021, Rockwell filed an amended Schedule 13D with the SEC stating its intent to sell some of its shares of PTC common stock under certain market conditions consistent with the limitations included in the Securities Purchase Agreement and stating that Rockwell would enter into one or more 10b5-1 plans to effect such sales.

At 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.