Emerson makes $7.6 bln offer for NI Corp public after rebuffed approaches


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U.S. industrial and software firm Emerson Electric Co on Tuesday made public its offer to buy NI Corp in a deal with an enterprise value of $7.6 billion after the automated testing equipment maker rebuffed earlier approaches.

The software firm’s all-cash bid of $53 per share represents a premium of about 13% to NI’s close on Friday. Shares of NI were up 13%, at the offer price, in trading before the bell, while Emerson fell 4%.

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Emerson has been involved in a string of deals over the last few years to pivot itself as a provider of automation products and services and the offer to buy NI is a fresh multi billion-dollar bet in that direction.

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Texas-based NI, formerly known as National Instruments, specializes in making automated testing and measurement tools to aid in research and validation of new technologies. It serves semiconductor, transportation, aerospace and defense industries.

The equity value of the offer is $6.92 billion, excluding debt. Emerson said the offer was not subject to any financing conditions.

Citi Research wrote in a note on Sunday NI could be a good strategic fit for Emerson, given it has indicated test and measurement markets as an area of focus.

NI did not immediately respond to a request for comment. Emerson said NI has not engaged ‘meaningfully’ since its bid of $53 per share was made privately in November. Emerson’s first outreach to NI was in May 2022 when it offered $48 per share.

NI said on Friday it was exploring strategic options after acquisition interest from companies. Reuters reported that one of the interested parties was Emerson.

The acquisition interest from potential suitors, according to Reuters, forced NI to adopt a so-called poison pill, which Emerson termed as disappointing.

Goldman Sachs & Co LLC and Centerview Partners LLC are serving as financial advisors to Emerson. (Reporting by Nathan Gomes and Priyamvada C in Bengaluru; Editing by Savio D’Souza and Krishna Chandra Eluri)


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