Emerson Completes Acquisition of NI, Advancing Global Automation Leadership
- Emerson's acquisition of NI strengthens its position as a global automation leader and expands its revenue growth potential.
- NI's portfolio of software and intelligent devices is expected to accelerate Emerson's revenue growth.
- Emerson expects to achieve $165 million in cost synergies by the end of year 5 through the application of best practices from the Emerson Management System.
- None.
NI to Become New Test & Measurement Segment within Emerson
The acquisition of NI advances Emerson's position as a global automation leader and expands its opportunity to capitalize on key secular trends like nearshoring, digital transformation, and sustainability and decarbonization. NI brings a portfolio of software, control and intelligent devices that is expected to accelerate Emerson's revenue growth aligned to its 4
"Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness and end market diversification across Emerson's portfolio," said Emerson President and Chief Executive Officer Lal Karsanbhai. "We are pleased to welcome NI employees to Emerson and benefit from our shared visions and cultures, including our mutual commitment to innovation, operational excellence and sustainability. Together, we look forward to providing our customers more innovative and differentiated products, executing on our synergy targets and delivering increased shareholder value."
NI will become a new reported segment within Emerson called Test & Measurement and will be consolidated into the Software and Control group. The Test & Measurement business will continue to be headquartered in
Ritu Favre has been appointed to lead the Test & Measurement segment as Business Group President. Ms. Favre joined NI in 2019 as Senior Vice President and General Manager of the semiconductor business and was promoted to Executive Vice President of Business Units in 2022, where she was responsible for driving growth across the semiconductor and electronics; aerospace, defense and government; transportation; and portfolio business units. She brings more than 30 years of technology experience to Emerson, with deep customer relationships and expertise on the emerging innovations and technologies driving electronic test and measurement forward.
"I am excited to lead Emerson's newly formed Test & Measurement business group and build on NI's strong foundation as we drive synergies, continue to enhance growth and profitability, and help to execute on Emerson's strategy as an automation leader," said Ms. Favre. "With a deep bench of talent, an impressive roster of customers and our strong combined innovation engine, we are well positioned to work closely with Emerson's broader business to enhance our ability to solve our customers' toughest test and measurement challenges."
As a result of the transaction's closing, NI's common stock has ceased trading on the Nasdaq.
Advisors
Goldman Sachs & Co. LLC and Centerview Partners LLC served as financial advisors to Emerson and Davis Polk & Wardwell LLP served as legal advisor. BofA Securities served as exclusive financial advisor to NI and Wachtell, Lipton, Rosen & Katz served as legal advisor.
About Emerson
Emerson (NYSE: EMR) is a global technology and software company providing innovative solutions for the world's essential industries. Through its leading automation portfolio, including its majority stake in AspenTech, Emerson helps hybrid, process and discrete manufacturers optimize operations, protect personnel, reduce emissions and achieve their sustainability goals. For more information, visit Emerson.com.
Forward-Looking and Cautionary Statements
Statements in this press release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties, and Emerson undertakes no obligation to update any such statements to reflect later developments. These risks and uncertainties include the financial impact of the transactions referenced herein, the scope, duration and ultimate impacts of the COVID-19 pandemic and the
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SOURCE Emerson
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