ST. LOUIS – Emerson (NYSE: EMR) has closed its previously announced $8.2 billion acquisition of NI (Nasdaq: NATI). As a result of the closing, NI's common stock has stopped trading on the Nasdaq.
The acquisition of the software-connected automated test and measurement company boosts Emerson's position as an automation leader and expands its opportunity to capitalize on key trends like nearshoring, digital transformation, sustainability and decarbonization.
NI specializes in software, control and intelligent devices. Emerson expects the deal to increase end-market exposure in discrete markets, which will be the company's second-largest industry segment. NI will also improve Emerson's exposure to high-growth industrial software markets.
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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 five through the application of best practices from the Emerson Management System.
NI will become a new test and measurement segment within Emerson and will be consolidated into the software and control group. The business will continue to be headquartered in Austin, Texas.
NI reported $1.66 billion in 2022 revenue. The company has operations in more than 40 countries and serves some 35,000 customers across the semiconductor and electronics, transportation and aerospace and defense markets.
Ritu Favre has been appointed to lead the test and measurement segment as business group president. 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.
Emerson's went public with its initial $7.6 billion bid for NI in January 2023 after the company balked at prior buyout negotiations.