Emerson Electric to Acquire National Instruments for $8.2 Billion in Cash

According to Reuters, industrial conglomerate Emerson Electric has agreed to acquire National Instruments for $8.2 billion, ending nearly a year-long acquisition battle for the measurement equipment manufacturer.

Emerson will pay $60 per share in cash, which represents a nearly 50% premium to National Instruments' closing price on January 12, the day before the company announced a strategic review. National Instruments' stock rose nearly 10% to a historic high of $57.65, while Emerson's stock fell more than 1% to $83.1.

Emerson first contacted National Instruments with an offer of $48 per share in May of last year. On Tuesday night, it beat out competitor Fortive Corp in a fierce bidding process.

The deal is expected to strengthen Emerson's efforts to reshape itself as a major global player in the automation industry. This acquisition will enhance a key pillar of Emerson's strategy, which is to establish its capabilities in the high-growth testing and measurement field and utilize National Instruments' software to connect automation systems as part of its profit-driving efforts.

Emerson CEO Lal Karsanbhai said in a statement, "These capabilities diversify Emerson's portfolio, allowing us to enter attractive and growing markets such as semiconductors and electronics, transportation and electric vehicles."

The acquisition is expected to be completed in the first half of Emerson's 2024 fiscal year. It could impact the supply chain and availability of products from National Instruments.