U.S. industrial conglomerate Emerson Electric Co said on Wednesday it will take over the measurement tool maker NI for $8.2 billion to boost its automation capabilities. The cash offer of $60 per share represented a 14.11 percent premium to NI stock’s closing price on Tuesday.
NI provides software-connected automated test and measurement systems that enable companies to get products to market faster and at a lower cost. NI solutions help customers solve current and future test challenges and increase the speed and efficiency of product development cycles. With revenues of $1.66 billion in 2022, NI operates in more than 40 countries and serves approximately 35,000 customers in the semiconductor and electronics, transportation, aerospace and defense markets.
The acquisition will allow Emerson to leverage Texas-based NI's software to connect automated test and measurement systems, helping the company achieve higher growth and margins across its automation portfolio.
The NI transaction is expected to close in the first half of Emerson's fiscal 2024.
Emerson President and CEO Lal Karsanbhai said, "We are pleased to enter into an agreement with NI whose best-in-class test and measurement products and software offerings accelerate Emerson's progress toward a cohesive, higher-growth and higher-margin automation portfolio." . "With this expansion into test and measurement, Emerson will enhance its automation capabilities and gain access to a broader set of customers who rely on NI solutions at critical points in the product development cycle. These capabilities provide Emerson with industry diversification." Diversification into attractive and growing discrete markets such as semiconductors and electronics, transportation and electric vehicles, and aerospace and defense that will benefit from secular growth trends. NI's business is fully aligned with our automation vision, We look forward to working together to bring more comprehensive and innovative solutions to our customers, accelerate growth and position Emerson to deliver significant shareholder value."
"Over the past few months, we have been evaluating strategic options for the future of our business with the goal of maximizing its value," said NI CEO Eric Starkloff. "We ran a robust and comprehensive process, considered a range of potential options, and believed this was the best outcome for all NI stakeholders. This transaction is a strong testament to the improvements we have implemented in recent years and initiatives that transformed NI into a software-focused company with higher growth, better profitability and lower cyclicality. We are pleased that Emerson recognizes the value we create and we believe They will help us build momentum to further position NI as the leading supplier of software-connected automated test and measurement systems."