Emerson's $8.2 billion acquisition of NI Dust Settled

Emerson stated that it will acquire measurement tool manufacturer NI for $8.2 billion. This acquisition will enable Emerson to utilize software from NI in Texas to connect automated testing and measurement systems, helping the company achieve higher growth and profitability in its automation product portfolio. The cash quote of $60 per share is 14.11% higher than the closing price of NI stock on Tuesday.

Lal Karsanbhai, President and CEO of Emerson, stated: We are pleased to reach an agreement with NI, whose top-notch testing and measurement products and software products have accelerated Emerson's progress in cohesive, higher growth, and higher profit automation combinations. With this expansion to testing and measurement, Emerson will enhance its automation capabilities and gain a wider range of customers at critical moments in the product development cycle, who rely on NI's solutions The diversification of the Emerson industry provides diversification, entering attractive and growing discrete markets such as semiconductors and electronics, transportation and electric vehicles, as well as aerospace and defense, which will benefit from long-term growth trends. NI's business is fully aligned with our automation vision, and we look forward to working together to bring more comprehensive and innovative solutions to our customers, accelerate growth, and enable Emerson to provide significant shareholder value.

NI provides an automated testing and measurement system for software connectivity, enabling enterprises to bring their products to the market faster and at a lower cost. NI's solutions help customers solve current and future testing challenges, and improve the speed and efficiency of product development cycles. NI's revenue in 2022 was $1.66 billion, operating in over 40 countries and serving approximately 35000 customers in the semiconductor and electronics, transportation, aerospace, and defense markets.

Eric Starkloff, CEO of NI, said: In the past few months, we have been evaluating our business's future strategic choices with the aim of maximizing their value. We have run a strong and comprehensive process, considered a range of potential options, and believe that this is the best outcome for all NI stakeholders. This transaction strongly demonstrates the improvements and initiatives we have implemented in recent years, which have transformed NI into a software based company Key companies with higher growth, better profitability, and lower periodicity. We are pleased that Emerson recognizes the value we create, and we believe they will help us build momentum and further position NI as a leading supplier of software connectivity automated testing and measurement systems.