Emerson Electric Co. Enters Agreement to Acquire Remaining Shares of AspenTech

Emerson Electric Co., a Missouri corporation, has recently announced a significant move to acquire all outstanding shares of Aspen Technology, Inc. The agreement, reached on January 26, 2025, involves Emerson’s acquisition of the shares not already owned by them through an all-cash tender offer at $265 per share.

Emerson, with an existing ownership of approximately 57.4% of AspenTech’s outstanding shares, will make a tender offer to purchase the remaining issued and outstanding shares of common stock of AspenTech. The acquisition, valued at $7.2 billion for the minority stake being acquired, comes with a fully diluted market capitalization of $17.0 billion and an enterprise value of $16.8 billion.

The transaction, unanimously recommended by a special committee of AspenTech’s Board of Directors, ensures that upon completion, AspenTech will become a wholly-owned subsidiary of Emerson. The AspenTech Board of Directors, following the recommendation of the Special Committee, has approved this acquisition unanimously.

“This transaction marks a key milestone in our portfolio transformation, and we are excited to fully integrate AspenTech into Emerson to advance our vision for software-defined control,” stated Emerson’s President and Chief Executive Officer, Lal Karsanbhai.

Emerson’s President and CEO added, “We look forward to offering AspenTech shareholders the opportunity to tender their shares at compelling and certain value while welcoming the AspenTech team into Emerson.”

The transaction is subject to the satisfaction of customary closing conditions and is expected to close in the first half of the calendar year 2025. Emerson plans to finance the deal through a combination of cash on hand and debt financing.

Goldman Sachs & Co. LLC and Centerview Partners LLC serve as financial advisors to Emerson, with legal advisory provided by Davis Polk & Wardwell LLP. On the other hand, Qatalyst Partners and Citi are acting as independent financial advisors to the AspenTech Special Committee, with legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP.

Through this acquisition, Emerson is poised to enhance its offerings in essential industries, facilitating operational optimization and sustainability goals. AspenTech, on the other hand, will benefit from the strengths of Emerson, advancing further in serving customers’ industrial software needs.

The joint press release by Emerson and AspenTech shed light on a secured financial future for AspenTech and its shareholders, joining hands to fulfill evolving industry demands for efficient solutions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Emerson Electric’s 8K filing here.

Emerson Electric Company Profile

Emerson Electric Co, a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.