Emerson agrees to $11bn deal with AspenTech
Emerson Electric has agreed to combine its industrial software business with Aspen Technology in a deal valued at about $11bn, the industrial giant’s latest step to help customers digitise their operations.
Emerson will pay $87 a share and 0.42 share of stock to AspenTech shareholders, equivalent to about $160 a share, according to a statement on Monday. That is 13% above where AspenTech closed on October 8 and 27% above its closing price on October 6, the last day before news of the potential deal first emerged. Emerson will contribute $6bn of cash to the new company.
Emerson will have a 55% stake in the combined company, which will keep the AspenTech name.
“We saw an attractive opportunity to accelerate our software strategy to capitalise on the rapidly evolving industrial software landscape and advance Emerson’s high-value portfolio journey,” Emerson CEO Lal Karsanbhai said.
Activity in AspenTech shares was minimal before the start of regular trading on Monday in New York. Emerson fell 1% in premarket activity.
The deal is expected to close in the second quarter, subject to the approval of AspenTech shareholders, regulators and to other customary conditions.
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