Emerson to buy remaining stake in AspenTech for $7.2 bln (updated)

Emerson Electric Co

27/01/2025 18:12

(Adds Emerson's shares, updates Aspen's)

        * 
      Emerson to acquire remaining shares in Aspen at $265 each
    

        * 
      Deal values stake at $7.2 billion, Aspen at $16.8 billion
    

        * 
      Offer per share is at a 10.4% premium to Emerson's last
offer
for Aspen's remaining shares
    

  
       Jan 27 (Reuters) - Emerson Electric  EMR.N  agreed to
buy the remaining shares in AspenTech  AZPN.O  that it does not
already own in a deal that values the stake at $7.2 billion, the
companies said on Monday.
The deal allows Emerson, which currently owns about a 57% stake
in AspenTech, to strengthen its focus in the industrial
automation segment.
    Emerson has offered to buy the remaining stake at $265 per
share in an all-cash tender offer, valuing AspenTech at $16.8
billion.
The per-share figure is at a premium of 10.4% from its prior
offer of $240 per share made in November.
    Following the closing of the deal, expected in the first
half of 2025, Aspen would operate as a wholly owned unit of
Emerson.
    Emerson will look to finance the stake purchase with its
existing cash on hand and debt financing.
    Goldman Sachs and Centerview Partners are financial advisors
to Emerson, while Qatalyst Partners and Citi are serving as
independent financial advisors to AspenTech.
Emerson took control of 55% of Aspen in 2022 after merging its
software units with the smaller rival.
    Emerson, founded a century ago, has streamlined its
portfolio over the past few years to focus on technology as
companies modernize their factory floors to include more
automation.
Aspen's shares were up about 3.3% at $263.5 in afternoon trade,
while Emerson slid 1.7%. 

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shailesh
Kuber and Alan Barona)
((mailto:UtkarshUmesh.Shetti@thomsonreuters.com))