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HomeStock InsidesNational Instruments (NASDAQ: NATI) To Buy Emerson (NYSE: EMR) for $8.2 Billion...

National Instruments (NASDAQ: NATI) To Buy Emerson (NYSE: EMR) for $8.2 Billion in Cash As It Seeks To Boost Sales


In a formal deal, announced by Emerson Electric Co (NYSE: EMR) and National Instruments Corp (NASDAQ: NATI), Emerson will buy NI for $60 per share in cash, for an equity value of $8.2 billion. 2.3 million shares of NI, or around 2% of the company’s total stock, are already owned by Emerson and were purchased at an average cost of $36.84. Therefore, the effective acquisition price per share for Emerson is $59.61.

Businesses may launch products more quickly and inexpensively with the help of NI’s software-connected automated test and measurement systems. With the aid of NI’s solutions, companies may better their product development cycles’ speed and efficiency while also resolving present and upcoming test difficulties. With operations in more than 40 countries and $1.66 billion in sales in 2022, NI serves around 35,000 clients in the semiconductor and electronics, transportation, aerospace, and military areas.

The President and Chief Executive Officer of Emerson, Lal Karsanbhai stated they are pleased to have reached an agreement with NI, whose best-in-class test and measurement product and software offerings accelerate Emerson’s progress toward a cohesive, higher-growth, higher-margin automation portfolio.

“Emerson will improve its automation skills and obtain a larger client base with its expansion into test and measurement, which relies on NI’s solutions at crucial stages of the product development cycle. With the use of these skills, Emerson may diversify its business into lucrative discrete areas like semiconductors and electronics, transportation and electric vehicles, aerospace, and military, which are all expected to have long-term development patterns. We look forward to collaborating with NI to provide our clients with more comprehensive and creative solutions, accelerate growth, and position Emerson to create considerable shareholder value because their business is in line with our vision for automation.

Eric Starkoff, chief executive officer of NI, stated, “Over the past few months, we’ve been examining strategic options for the future of our firm with the purpose to maximize its value. “We conducted a thorough and thorough process, took into account a variety of solutions, and feel that this is the best result for all NI stakeholders. The fact that NI has been turned into a software-focused business with stronger growth, better profitability, and less cyclicality in recent years is clearly demonstrated by this acquisition. We are overjoyed that Emerson appreciates the value we have produced, and we are certain that they will support us in maintaining our momentum and further solidifying NI’s position as a market leader in software-connected automated test and measurement systems.

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