April 17, 2023 | Industrials | North America | Ended

National Instruments / Emerson Electric: Deal Insights

Diversified industrial manufacturer Emerson Electric (“Emerson”) has agreed to acquire its smaller automation solutions rival, National Instruments (“NI”), for $8.2bn, the companies disclosed on 12-Apr-23. The $60 per share offer represents a 49% premium to NI’s undisturbed price on 12-Jan-23, the day before the target announced it would undertake a strategic review. Emerson, which currently owns 2% of NI, first made a play for the company on 25-May-22 when it privately tabled a $48 per share proposal. A bidding war followed that included rival Fortive (FTV US) and Keysight Technologies (KEYS US). NI succumbed to pressure from the potential suitors and on 13-Jan-23 launched a strategic review and formal sale process after Emerson threatened to challenge the NI board if it declined to engage in discussions. A few days later, on 17-Jan-23, Emerson publicly disclosed its $48 per share proposal from May 2022 and also revealed that it had subsequently revised its bid on 3-Nov-22, to $53 per share. The $53 proposal was restated on 11-Jan-23, and Emerson said it was making the offer public because NI refused to engage. After confirming receipt of Emerson’s proposals, NI announced that the companies were amicably discussing a deal. Reuters reported on 12-Apr-23 that the bidding process was “tightly contested” until the last minute and that NI extended the deadline for final bids several times ...

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