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Technology
12 Oct 2021
Emerson and AspenTech Merger Deal for Industrial Software
The Index Today
Emerson Electric Co. has announced plans for an $11 billion merger deal to boost its market shared in industrial technology. The firm will be merging two of its businesses dealing in software with Aspen Technology Inc.
Officials from both companies stated AspenTech share value of $160 per piece would mean shareholders will receive $87 and 0.42 as the combined value. The cash-and-stock transaction is expected to be announced on Monday.
With the new combined offerings, the firm can allocate resources in building and designing new industrial systems, analyzing and repairing, and more. Many companies have started investing in developing software to boost production and industrial efficiency, pointing towards new routes which has prompted Emerson to take initiative.
AspenTech is a renowned firm located in Bedford Massachusetts specializes in developing high-tech software for businesses in chemicals, energy, engineering, mining and maintenance. Under the new deal, Emerson’s two units, OSI Inc and Geological Simulation Software will merge, both make up around $300 million out of the $12 billion revenue coming from the automation segment.
Emerson will contribute $6 billion as cash in the merger deal and will have 55% of ownership of the company. The new company formed will still have AspenTech’s name and will continue under the leadership of the current chief executive, Antonio Pietri.
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