Emerson Electric Co. (NYSE: EMR) announced today that it has completed its acquisition of National Instruments Corp. (NASDAQ: NATI), a global leader in automated test and measurement equipment and software. The all-cash transaction is valued at approximately $7.6 billion, including net debt.
The acquisition of NI is a significant step forward in Emerson’s strategy to become a leading global provider of automation solutions. NI’s products and technologies are used by customers in a wide range of industries, including aerospace and defense, automotive, electronics, and semiconductors. The acquisition will allow Emerson to expand its portfolio of automation offerings and provide customers with a more comprehensive solution for their needs.
“We are excited to welcome NI to the Emerson family,” said Lal Karsanbhai, Emerson’s chairman and chief executive officer. “NI is a world-class company with a strong track record of innovation. The combination of our two companies will create a global leader in automation with a broad portfolio of products and technologies. We are confident that this acquisition will create significant value for our customers, shareholders, and employees.”
NI’s chief executive officer, Eric Starkloff, will join Emerson as an executive vice president and lead the company’s newly created Automation Solutions business.
“We are thrilled to be joining Emerson,” said Starkloff. “Emerson is a global leader in automation with a strong track record of innovation. We believe that the combination of our two companies will create a powerful force in the automation industry. We are excited to work together to provide our customers with the best possible solutions for their needs.”
The acquisition of NI is expected to be accretive to Emerson’s earnings per share in the first full year. Emerson will provide additional financial guidance for fiscal 2024 during its third quarter earnings call on October 25, 2023.