Emerson (NYSE: EMR) and NI (Nasdaq: NATI) announced today that they have entered into a definitive agreement whereby Emerson will acquire NI for $60 per share in cash for an equity value of $8.2 billion. Emerson already owns approximately 2.3 million shares of NI, representing approximately 2% of the company’s outstanding shares, acquired at a weighted average price of $36.84. As a result, Emerson’s effective purchase price per share is $59.61.
NI provides automated test and measurement systems connected to software that enables companies to bring products to market faster and at a lower cost. NI solutions help customers solve current and future testing challenges and improve the speed and efficiency of their product development cycles. With 2022 sales of $1.66 billion, NI operates in more than 40 countries and serves approximately 35,000 customers in the semiconductor and electronics, transportation, and aerospace and defense industries.
“We are pleased to be in an agreement with NI, whose industry-leading test and measurement product and software offerings are accelerating Emerson’s progress towards a cohesive, higher-growth, higher-margin automation portfolio,” said Lal Karsanbhai, President, and Chief Executive Officer of Emerson. “With this expansion of test and measurement, Emerson will expand its automation capabilities and attract a broader group of customers who rely on NI solutions at critical points in the product development lifecycle. These capabilities provide Emerson with industry diversification into attractive and growing discrete markets such as semiconductors and electronics, transportation and electric vehicles, and aerospace and defense that are poised to capitalize on secular growth trends. NI’s business is well aligned with our vision of automation, and we look forward to working together to offer our customers broader and more innovative solutions that will accelerate growth and enable Emerson to deliver significant shareholder value.”
“Over the past few months, we have evaluated strategic options for the future of our company with the intention of maximizing its value,” said Eric Starkloff, NI Chief Executive Officer. “We conducted a robust and comprehensive process, considered a number of potential options, and believe this represents the best outcome for all NI stakeholders. This transaction is strong evidence of the improvements and initiatives we have implemented over the past several years that have transformed NI into a software-centric company with higher growth, better profitability and less cyclicality. We are pleased that Emerson recognizes the value we create and believe they will help us build on our momentum to further position NI as a software leader. networked automated test and measurement systems.”
