(Reuters) -U.S. industrial conglomerate Emerson Electric Co on Wednesday said it would buy measurement equipment maker NI Corp for $8.2 billion in an effort to boost its automation capabilities.
The $60-per-share cash deal represents a premium of 14.11% to the NI stock’s Tuesday close.
The purchase of Texas-based NI, which provides software-connected automated test and measurement systems, will help Emerson achieve a higher-growth and higher-margin automation portfolio.
“These capabilities provide Emerson industry diversification into attractive and growing discrete markets like semiconductor and electronics, transportation and electric vehicles, and aerospace and defense,” Emerson CEO Lal Karsanbhai said in a statement.
The deal is expected to close in the first half of Emerson’s fiscal 2024.
Shares of Emerson were down about 2% at $82.98 in premarket trade.
NI launched a formal sale process in January after Emerson threatened to challenge its board if it did not engage in deal negotiations. Emerson dropped its hostile bid once the auction for National Instruments got underway.
Reuters reported on Tuesday that Emerson was in advanced talks to acquire NI.
Last month, NI decided that Fortive Corp and Keysight Technologies Inc have the potential to top Emerson’s prior $7 billion bid, Reuters had reported, citing three people familiar with the matter.
Goldman Sachs & Co LLC and Centerview Partners LLC are serving as financial advisors to Emerson, while Davis Polk & Wardwell LLP is serving as legal advisor.
(Reporting by Nathan Gomes in Bengaluru; Editing by Savio D’Souza and Devika Syamnath)
