NI to Become New Test & Measurement
Segment within Emerson
ST.
LOUIS, Oct. 11, 2023 /PRNewswire/ -- Emerson
(NYSE: EMR) today announced it has closed its acquisition of
NI (Nasdaq: NATI), a leading provider of software-connected
automated test and measurement systems, at an equity value of
$8.2 billion.
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 4-7% through the
cycle organic growth target. NI increases Emerson's end market
exposure in discrete markets, which will be Emerson's second
largest industry segment, and with approximately 20% of sales in
software, NI also increases Emerson's exposure to high-growth
industrial software markets. NI increases Emerson's gross profit,
with further adjusted EBITA margin expansion opportunities as
Emerson delivers an expected $165
million of cost synergy opportunities by the end of year 5
through application of best practices from the Emerson Management
System.
"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 Austin, Texas.
NI reported $1.66 billion in 2022
revenue and operates in more than 40 countries, serving
approximately 35,000 customers across high-growth semiconductor and
electronics, transportation and aerospace and defense markets.
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 Russia-Ukraine conflict, as well as economic and
currency conditions, market demand, including related to the
pandemic and oil and gas price declines and volatility, pricing,
protection of intellectual property, cybersecurity, tariffs,
competitive and technological factors, inflation, among others, as
set forth in the Company's most recent Annual Report on Form 10-K
and subsequent reports filed with the SEC.
Emerson uses our Investor Relations website,
www.Emerson.com/investors, as a means of disclosing information
which may be of interest or material to our investors and for
complying with disclosure obligations under Regulation FD.
Accordingly, investors should monitor our Investor Relations
website, in addition to following our press releases, SEC filings,
public conference calls, webcasts and social media.
Contacts
Investors
Colleen
Mettler
(314) 553-2197
Media
Joseph
Sala / Tanner Kaufman /
Greg Klassen
Joele Frank, Wilkinson Brimmer
Katcher
(212) 355-4449
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SOURCE Emerson
