Emerson Electric said Monday that it is merging its software units with smaller rival Aspen Technology in a deal worth $11 billion, further expanding its industrial automation business that covers a wide range of sectors from utilities and mining to chemicals and automobiles.
The merged industrial software company would consist of Emerson’s grid modernization technology and geological simulation software, as well as AspenTech’s software products for the mining, manufacturing and pharmaceutical industries.
Emerson said the combined company’s software would also provide sustainability requirements in green energy markets such as biofuels, hydrogen and carbon capture.
The cash and stock merger announced Monday will be available for about $160 per share, and AspenTech shareholders would receive $87 and 0.42 shares of the merged company for each share they currently own.
Emerson will acquire a 55% stake and AspenTech shareholders will hold the remainder of the new company, which will retain the AspenTech name and will be chaired by current CEO Antonio Pietri.
The transaction, which is expected to be adjusted to earnings after the maiden year, is expected to be finalized in the second quarter of 2022.
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