By Senad Karaahmetovic
Emerson (NYSE:EMR) confirmed today it has agreed to acquire National Instruments (NASDAQ:NATI) in a deal that gives the latter an equity value of $8.2 billion.
Reuters reported earlier today that two sides are in advanced talks over a ~$8B deal. The agreed price represents a 49% premium to NATI’s closing share price on January 12, 2023, the day prior to the company’s public announcement of a strategic review.
"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 Chief Executive Officer of Emerson.
"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."
Emerson will pay $60 per share in cash to acquire ~98% of outstanding NATI shares as it already owned around 2% of the company. The minority stake was acquired at a weighted average price of $36.84, EMR said in a press release.
Eric Starkloff, NI's Chief Executive Officer, added: "We ran a robust and comprehensive process, considered a range of potential options, and believe this represents the best outcome for all NI stakeholders.”
The transaction is expected to close in the first half of Emerson's fiscal 2024. The company also reaffirmed its Q2 guidance.
Emerson shares are down 2.3% in premarket Wednesday.