Emerson Electric to Acquire Remaining Stake in AspenTech for $7.2 Billion

Emerson Electric to Acquire Remaining Stake in AspenTech for $7.2 Billion

Emerson Electric has reached an agreement to purchase the remaining shares of AspenTech that it does not already own, in a deal valued at $7.2 billion. This acquisition will allow Emerson to expand its focus on industrial automation and streamline its portfolio.

Details of the Acquisition

Emerson, which already holds a 57% stake in AspenTech, has offered $265 per share in an all-cash tender offer. This price represents a 10.4% premium over its previous offer of $240 per share made in November. The total value of AspenTech in this deal is estimated at $16.8 billion.

Impact on AspenTech’s Operations

Upon closing the deal, expected in the first half of 2025, AspenTech will become a wholly owned subsidiary of Emerson. AspenTech’s shares have risen by 3% to $262.9 in premarket trading following the announcement.

Financing and Advisory Support

Emerson plans to finance the acquisition using a mix of cash reserves and debt financing. Goldman Sachs and Centerview Partners are serving as financial advisors to Emerson, while Qatalyst Partners and Citi are advising AspenTech.

Background on Emerson and AspenTech

In 2022, Emerson gained control of 55% of AspenTech after merging its software units with the company. This acquisition aligns with Emerson’s strategy of focusing on technology and automation as manufacturers modernize their factory floors.

“Emerson Electric to Acquire Remaining Stake in AspenTech for $7.2 Billion”