ST. LOUIS, MO. — Emerson, a global technology and software company, has agreed to purchase National Instruments Corp. (NI), a provider of testing and measurement tools, for about $8.2 billion, or $60 per share in cash.
The deal was announced April 12 and is expected to close in the first half of Emerson’s 2024 fiscal year, which begins in October.
Based in Austin, Texas, NI provides software-connected automated testing and measurement systems. The company listed $1.66 billion in 2022 revenue and operates in more than 40 countries, serving approximately 35,000 customers across the semiconductor, electronics, transportation, aerospace, and defense markets.
“We are pleased to reach an agreement with NI, whose best-in-class test and measurement product and software offerings accelerate Emerson’s progress toward a cohesive, higher-growth and higher-margin automation portfolio,” Lal Karsanbhai, Emerson president and CEO, said in a press release. “With this expansion into test and measurement, Emerson will enhance its automation capabilities and gain a broader set of customers that relies on NI’s solutions at critical points along the product development cycle.”
Emerson already owns approximately 2.3 million shares of NI, representing approximately 2% of shares outstanding, which were acquired at a weighted average price of $36.84. As a result, Emerson’s effective per share purchase price is $59.61, according to the press release.
“Over the past several months, we’ve been evaluating strategic options for the future of our business with the intent to maximize its value,” said Eric Starkloff, the NI CEO. “We ran a robust and comprehensive process, considered a range of potential options, and believe this represents the best outcome for all NI stakeholders. This transaction is a strong testament to the improvements and initiatives we’ve implemented in recent years that have transformed NI into a software-focused company with higher growth, better profitability, and lower cyclicality.”
The transaction has been approved by the board of directors at each company. Under its terms, NI shareholders will receive $60 per share in cash, which represents a 49% premium over NI’s closing share price as of January 12, 2023, the day prior to NI’s public announcement of a strategic review.
Emerson expects to finance the transaction using available cash and liquidity, including approximately $8 billion of post-tax proceeds from the sale of a majority stake in its Climate Technologies business to the private equity firm Blackstone, a deal that is expected to close in the second quarter of this year, the press release said. Climate Technologies includes the Copeland brand of compressors. For more information, visitwww.emerson.com.
