This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Emerson Plans to Merge Industrial-Software Businesses With AspenTech
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Emerson Plans to Merge Industrial-Software Businesses With AspenTech
Markets

Emerson Plans to Merge Industrial-Software Businesses With AspenTech

Editorial Board Published October 11, 2021
Share
Emerson Plans to Merge Industrial-Software Businesses With AspenTech
SHARE

The cash-and-stock transaction would value AspenTech, as the company is known, at around $160 a share, officials from the companies said. AspenTech’s shareholders would receive $87 and 0.42 share of the combined company for each share they currently own. The transaction is expected to be announced Monday.

Contents
Newsletter Sign-upDeals AlertMore Deals & Deal Makers

The combined company’s offerings would be used by clients to do everything from designing industrial systems to running, repairing and analyzing them. Companies ranging from oil drillers to life-sciences startups are pouring billions of dollars into software to increase efficiency, providing Emerson and other established industrial concerns new avenues for growth.

Bedford, Mass.-based AspenTech makes software for companies in industries including chemicals, mining and energy streamline engineering and maintenance processes. It had roughly $700 million of revenue for its fiscal year, ended in June.

Emerson, a larger industrial conglomerate, is based in St. Louis. It makes products ranging from Ridgid pipe wrenches to software for power plants and has a market value of around $58 billion following a sharp rise in the stock since early last year.


Newsletter Sign-up

Deals Alert

Major news in the world of deals and deal-makers.


The deal involves two small businesses from Emerson’s automation unit, which makes software and systems for manufacturers, oil producers and utilities and accounted for about two-thirds of the company’s revenue last year. The businesses are OSI Inc., which Emerson purchased last year for $1.6 billion, and Geological Simulation Software. They account for roughly $300 million of the automation segment’s roughly $12 billion in annual revenue.

Emerson, which is also contributing roughly $6 billion in cash as part of the deal, would own 55% of the new entity on a fully diluted basis. AspenTech shareholders would own the rest.

The price represents a 27% premium to AspenTech’s closing share price before Bloomberg reported last week that the two companies were in talks. AspenTech shares closed at $141.55 Friday.

The new entity would retain AspenTech’s name and be led by its chief executive, Antonio Pietri.

The companies have had a commercial partnership since 2018. Mr. Pietri and Emerson CEO Lal Karsanbhai said in interviews they sketched out the deal over an Italian dinner in Boston’s North End in July, concluding in part that a combined company could be better positioned for further acquisitions.

“We believe there are ample opportunities for us as an industrial, and a significant software business, to truly expand into other areas,” Mr. Karsanbhai said.

Mr. Karsanbhai, an Emerson veteran, previously led the company’s automation segment and took the top job around eight months ago. He succeeded longtime CEO David Farr, who retired earlier this year after 21 years leading the company and guiding it through the early days of the coronavirus pandemic.

Last August, Mr. Farr struck the deal for OSI, or Open Systems International Inc., which expanded Emerson’s power-station-management software into renewable-power sources, an increasingly important part of the industry.

Emerson’s remaining business would include the rest of its automation division as well as climate controls, such as heating- and air-conditioning equipment, and tools and home products like thermostats and garbage disposals.

Industrial companies have provided a steady stream of deals over the past decade as they reconfigure themselves to suit evolving technology and investors’ preference for narrowly focused companies. Sprawling conglomerates such as General Electric Co. and United Technologies Corp. have been remaking themselves and looking at bigger pushes into technology.

In a move similar to Emerson’s, rival Schneider Electric SE in 2018 merged its industrial-software business with Aveva Group PLC in a roughly $4 billion deal.

It is a boom time for mergers in general, as companies with surging stocks and ample cash look for deals that will boost growth and profitability. In the U.S., companies have struck more than $2 trillion of takeover deals so far in 2021, more than double the year-earlier pace, according to Dealogic.

More Deals & Deal Makers

Write to Cara Lombardo at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Ron Rivera’s culture change hits Washington reality Ron Rivera’s culture change hits Washington reality
Next Article Netflix to Sell ‘Squid Game’ Goods, Other Products on Walmart Site Netflix to Sell ‘Squid Game’ Goods, Other Products on Walmart Site

Editor's Pick

New Council of Financial Advisors report finds tariffs not inflicting inflation

New Council of Financial Advisors report finds tariffs not inflicting inflation

Former Trump administration head of financial coverage Tomas Philipson discusses President Trump’s commerce talks with South Korea and Japan, present…

By Editorial Board 4 Min Read
NBA Summer time League takeaways: Warriors rookie Will Richard makes debut vs. Spurs
NBA Summer time League takeaways: Warriors rookie Will Richard makes debut vs. Spurs

Richard makes debut SAN FRANCISCO – The Warriors‘ acquisition of their three…

5 Min Read
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia

Studying Time: 3 minutes Moriah Plath is clearing the air, as a…

5 Min Read

Oponion

Suspected Ransomware Payments Nearly Doubled This Year, Treasury Says

Suspected Ransomware Payments Nearly Doubled This Year, Treasury Says

WASHINGTON—The volume of suspected ransomware payments flagged by U.S. banks…

October 15, 2021

Rubio defends Trump's strategy to Russia-Ukraine battle

Sen. Marco Rubio (R-Fla.) defended GOP…

September 29, 2024

U.S. Gas Exports Likely More Trickle Than Flood

Is it time for a third…

December 18, 2021

Samsung Posts Sharp Rise in Quarterly Profit

SEOUL—Samsung Electronics Co. reported record quarterly…

April 28, 2022

White Home reporters are fed up with Trump sidelining journalists

The White Home Correspondents’ Affiliation is…

April 1, 2025

You Might Also Like

Copper costs hit document excessive after Trump declares 50% import tariff
Markets

Copper costs hit document excessive after Trump declares 50% import tariff

President Donald Trump introduced his administration will impose a 50% tariff on imported copper, marking a brand new ecalation in…

4 Min Read
Tesla shares slide after Musk declares new political transfer
Markets

Tesla shares slide after Musk declares new political transfer

FOX Enterprise’ Stuart Varney analyzes President Donald Trump and former DOGE head Elon Musk’s relationship after Musk’s public criticism of…

6 Min Read
Nvidia CEO sells M value of inventory as a part of deliberate sale
Markets

Nvidia CEO sells $15M value of inventory as a part of deliberate sale

Zor Capital Funding Advisory consultant Joe Fahmy discusses the technical indicators that predict inventory market momentum on Making Cash. Nvidia CEO Jensen…

3 Min Read
Ford recollects over 130,000 Lincoln Aviators because of threat of elements detaching whereas driving
Markets

Ford recollects over 130,000 Lincoln Aviators because of threat of elements detaching whereas driving

Ford is leveraging its dealership empire to revamp how company America helps charities. Ford Motor Firm is recalling greater than…

3 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?