Emerson offers to buy all of AspenTech in $15 billion deal to sharpen focus on automation By Reuters
Written by Nathan Gomes
(Reuters) – Emerson Electric on Tuesday proposed to buy all of AspenTech it does not own for $15.1 billion, as the company looks to sharpen its focus on industrial automation.
The company in 2021 merged the software units with smaller competitor Aspen Technology (NASDAQ: ) and controlled about 55% of the combined business.
Emerson (NYSE: ) offered $240 per share for all other industrial software technology providers on Tuesday, and will pay about $6.53 billion for the stake, according to Reuters calculations.
AspenTech announced that it had received the request and said its board would review the proposal.
Shares of AspenTech closed up 1.4% at $241, while those of Emerson ended 7.2% higher at $117.67.
Emerson, founded more than a century ago, has restructured its portfolio over the past few years to focus on technology as companies modernize their factory floors to include more automation.
“Emerson Electric’s move to acquire full ownership of AspenTech does not surprise us,” said CFRA Research’s Jonathan Sakraida.
Sakraida noted that labor issues following the pandemic and a series of union strikes this year are likely to keep manufacturers on the back burner.
The transaction is not subject to any financial condition, the company said, but Emerson will not proceed with the deal unless a special committee, including directors appointed by AspenTech and advised by independent legal and financial advisors, recommends it.
Emerson has also begun exploring options, including a cash sale of its Safety & Productivity unit, which includes businesses unrelated to its automation portfolio. The segment has contributed $1.4 billion in fiscal 2024.
The company said it expects its 2025 earnings per share to be between $5.85 and $6.05, the midpoint above analysts’ estimates of $5.89, according to data compiled by LSEG.
Emerson will repurchase approximately $2.0 billion of its common stock in fiscal year 2025, with approximately $1.0 billion expected to be completed in the first quarter.
