Yahoo Finance Emerson (EMR) Proposes $7.6B Bid for National Instruments
Emerson Electric Co. EMR has announced its proposal to acquire National Instruments or NI NATI for $53 per share in cash, representing an enterprise value of $7.6 billion.
The deal, which is not subject to any financing conditions, represents a 32% premium over NI’s Jan 12 closing price and a 38% premium over the volume-weighted average price for the last 30 trading days ending Jan 12.
Emerson revealed that the proposal was submitted to NI on Nov 3, 2022, and was an improvement over the initial offer of $48 per share made on May 25, 2022. In a detailed statement, EMR revealed that it had been trying to engage with NI privately over a deal since May 16, 2022, and how it resisted any meaningful discussions for months.
Emerson Electric Co. Price
Emerson Electric Co. price | Emerson Electric Co. Quote
On Jan 13, 2023, NATI announced a strategic review process to explore acquisition interests from other companies. It also adopted a so-called poison pill to protect the company’s interest and that of its shareholders.
Having purchased 2.3 million shares of NI, Emerson has already received regulatory approval to increase its stake. While EMR carries a Zacks Rank #4 (Sell), NI carries a Zacks Rank #3 (Hold).
Emerson’s move to acquire NI is aligned with its focus on global automation to drive growth and profitability. With NI’s premium electronic test and measurement product and software offerings, the acquisition is expected to help EMR offer enhanced solutions to diverse end markets.
In an attempt to transform into a global automation company, Emerson has lately divested several non-core businesses. In November 2022, the company divested its InSinkErator business, a food waste disposers and instant hot water dispensers manufacturer, for $3 billion. In October 2022, EMR sold a majority stake in its Climate Technologies business to private equity funds managed by Blackstone in a $14 billion deal.
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