April 12 (Reuters) - US industrial conglomerate Emerson Electric agreed on Wednesday to buy National Instruments (NI) for US $8.2 billion, ending a nearly year-long takeover of the measuring equipment maker.
Emerson's $60-a-share cash offer represents a 49 per cent premium to NI's closing price as of January 12, 2023, the day before the strategic review was announced. Emerson first approached NI with a $48-a-share offer in May last year and beat out rivals Fortive and Keysight in the final round of bidding on Tuesday, it was revealed.
NI provides software-connected automated test and measurement systems that enable businesses to bring products to market faster and at a lower cost. NI's solutions help 35,000 customers in more than 40 countries and territories solve current and future testing challenges and increase the speed and efficiency of their product development cycles.
Over the past few years, Emerson has executed a series of deals to streamline itself as an industrial automation provider. The acquisition is expected to strengthen Emerson's efforts to reinvent itself as a major global player in the automation industry, becoming a key pillar of Emerson's strategy to build its capabilities in the high-growth test and measurement space and enabling it to leverage NI's software-connected automation systems as part of its drive for profitability.
In an official statement, Lal Karsanbhai, President and CEO of Emerson, said, "With this expansion into test and measurement, Emerson will enhance its automation capabilities and win over a broader customer base that relies on NI's solutions at critical points in the product development cycle. "These capabilities allow us to diversify into attractive and growing discrete markets such as semiconductors and electronics, transportation and electric vehicles."
"Over the past few months, we have been evaluating strategic options for the future of our business in order to maximize its value," said Eric Starkloff, CEO of NI. "We unrolled a robust and comprehensive process that considered a range of potential options and believe this represents the best outcome for all NI stakeholders. We are pleased that Emerson recognizes the value we have created and believe they will help us build on our market advantage and further position NI as the leading provider of software-connected automated test and measurement systems."
The plan has been approved by the boards of Emerson and NI, and the transaction is expected to close in the first half of Emerson's fiscal year 2024.
