Emerson and NI have entered into an agreement that sees Emerson acquiring NI, a company that provides software-connected automated test and measurement systems, simulation and automation controllers.
Emerson and NI have entered into an agreement that sees Emerson acquiring NI, a company that provides software-connected automated test and measurement systems, simulation and automation controllers, among other products and software. The anticipated $8.2 billion acquisition subject to the completion of customary closing conditions, including regulatory approvals and approval by NI shareholders, as noted in the April 12 announcement from Emerson. Key NI technology includes its object-oriented NI LabVIEW software programming platform, data acquisition capabilities and industrial controllers.
“We are pleased to reach an agreement with NI, whose best-in-class test and measurement product and software offerings accelerate Emerson’s progress toward a cohesive, higher growth and higher margin automation portfolio,” said Lal Karsanbhai, president and CEO of Emerson in a press release. “With this expansion into test and measurement, Emerson will enhance its automation capabilities and gain a broader set of customers that relies on NI’s solutions at critical points along the product development cycle. These capabilities provide Emerson industry diversification into attractive and growing discrete markets like semiconductor and electronics, transportation and electric vehicles, and aerospace and defense that are poised to benefit from secular growth trends. NI’s business is well-aligned with our vision for automation and we look forward to working together to bring more comprehensive and innovative solutions to our customers, accelerate growth and position Emerson to deliver significant shareholder value.”
“Over the past several months, we’ve been evaluating strategic options for the future of our business with the intent to maximize its value,” said Eric Starkloff, NI’s CEO. “We ran a robust and comprehensive process, considered a range of potential options, and believe this represents the best outcome for all NI stakeholders. This transaction is a strong testament to the improvements and initiatives we’ve implemented in recent years that have transformed NI into a software focused company with higher growth, better profitability and lower cyclicality. We’re thrilled that Emerson recognizes the value we’ve created and we believe they will help us build on our momentum to further position NI as a leading provider of software-connected automated test and measurement systems.”
Emerson’s reach into the design and validation phase of the lifecycle, providing early access to customers. Overall, NI will increase Emerson’s end market exposure in discrete markets to 18% of sales, which will be Emerson’s second largest industry segment.
The transaction is expected to close in the first half of Emerson’s fiscal 2024, subject to the completion of customary closing conditions, including regulatory approvals and approval by NI shareholders.
– Edited from an Emerson press release by CFE Media and Technology.
