Emerson is ready to pay $7.6 billion for NI Corp
2023.01.17 12:11
Emerson is ready to pay $7.6 billion for NI Corp
By Kristina Sobol
Budrigannews.com – Emerson, an American software and industrial company (NYSE:) After the manufacturer of automated testing equipment rebuffed previous approaches, Electric Co. made its $7.6 billion offer to buy NI Corp public on Tuesday.
The software company’s all-cash offer of $53 per share is about 13% higher than NI’s close on Friday. Before the bell, NI shares rose 13% at the offer price, while Emerson shares fell 4%.
The offer to acquire NI represents a fresh multi-billion-dollar bet in that direction, as Emerson has been involved in a number of transactions over the past few years to reposition itself as a provider of automation products and services.
NI, which is based in Texas and used to be called National Instruments (NASDAQ:), specializes in the production of automated tools for testing and measuring in order to support the study and validation of new technologies. It serves the transportation, aerospace, defense, and semiconductor industries.
The offer’s equity value, excluding debt, is $6.92 billion. According to Emerson, there were no financing conditions attached to the offer.
On Sunday, Citi Research wrote in a note that NI could be a good strategic fit for Emerson because it has indicated that it will focus on the test and measurement markets.
A request for comment was made, but NI did not immediately respond. Since its private offer of $53 per share in November, Emerson stated, NI has not engaged “meaningfully.” In May 2022, Emerson made its initial contact with NI by offering $48 per share.
Following company interest in acquisition, NI stated on Friday that it was looking into strategic options. According to Reuters, Emerson was one of the interested parties.
Reuters says that potential suitors’ interest in the acquisition compelled NI to use a so-called poison pill, which Emerson called disappointing.
Goldman Sachs and Co. Emerson is working with LLC and Centerview Partners LLC as its financial advisors.
