(Bloomberg) — Emerson Electric Co. agreed to combine its industrial software business with Aspen Technology Inc. in a deal valued at about $11 billion, the industrial giant’s latest step to help customers digitize their operations.
Emerson will pay $87 a share and 0.42 share of stock to AspenTech shareholders, equivalent to about $160 a share, according to a statement Monday that confirmed an earlier Bloomberg report. That is 13% above where AspenTech closed on Oct. 8 and 27% above its closing price on Oct. 6, the last day before news of the potential deal first emerged. Emerson will contribute $6 billion of cash to the new company.
Emerson will have a 55% stake in the combined company, which will keep the AspenTech name.
“We saw an attractive opportunity to accelerate our software strategy to capitalize on the rapidly evolving industrial software landscape and advance Emerson’s high value portfolio journey,” Emerson Chief Executive Officer Lal Karsanbhai said in the statement.
Activity in AspenTech shares was minimal before the start of regular trading Monday in New York. Emerson fell 1% in premarket activity.
The deal is expected to close in the second quarter, subject to the approval of AspenTech shareholders, regulators and to other customary conditions.
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