Emerson Backs 2021 Guidance Amid Merger Plan
October 11 2021 - 6:44AM
Dow Jones News
By Matt Grossman
Emerson Electric Co. reaffirmed its full-year sales and earnings
guidance Monday, a day after the company said it planned to merge
two industrial-software businesses with Aspen Technology Inc.
AspenTech said it still expects its full-year adjusted earnings
to be $4.06 a share to $4.08 a share, on underlying sales growth of
5% to 6%.
In the planned merger valued at roughly $11 billion, Emerson's
OSI Inc. and its Geological Simulation Software businesses would be
merged with AspenTech to create a company in which Emerson would
own a 55% stake. Emerson will also contribute $6 billion in cash to
the company.
The merged AspenTech company would have revenue of roughly $1.1
billion in fiscal 2022, with adjusted earnings before interest,
taxes, depreciation and amortization of about $490 million, Emerson
and AspenTech said. The post-merger AspenTech would trade on the
Nasdaq, retaining ticker symbol AZPN.
The deal is expected to close in the second quarter of next
year.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 11, 2021 07:29 ET (11:29 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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