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

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

(Reuters) -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 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.

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 billion-dollar bet in that direction.

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 in the semiconductor, transportation, aerospace and defense industries.

The equity value of the offer is $6.92 billion, excluding debt.

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. Emersons 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.

In October, Emerson sold a majority stake in its climate technologies unit to Blackstone Inc in a deal that valued the business at $14 billion.

Last year, Emerson also sold its division that makes waste disposal equipment and hot water dispensers to Whirlpool Corp and merged its software units with smaller rival Aspen Technology.

(Reporting by Nathan Gomes and Priyamvada C in Bengaluru; Editing by Savio DSouza and Krishna Chandra Eluri)

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