Emerson Discloses $7.6B Offer For National Instruments - Reveals Several Private Attempts Made Over Last Eight Months

  • Emerson Electric Co EMR proposed a takeover offer to National Instruments Corp NATI for $53 per share in cash at an implied enterprise value of $7.6 billion.
  • The offer implies a premium of 32% on NI's January 12 closing price, the day before NI's public announcement of a strategic review on January 13, 2023.
  • The offer represents a 45% premium to NI's closing share price as of November 3, 2022, the day Emerson submitted its latest proposal to acquire NI.
  • The offer represents an improvement over an initial $48 per share proposal submitted on May 25, 2022. 
  • Emerson has attempted to engage constructively with NI in private since May 16, 2022.
  • Lal Karsanbhai, CEO of Emerson, said, "Acquiring NI is another step forward in Emerson's journey to develop a cohesive, higher growth and higher margin portfolio and build on its global automation focus."
  • The transaction will likely accrue to Emerson's adjusted EPS in the first year, meet Emerson's communicated returns threshold, and improve Emerson's overall growth.
  • Emerson sees significant profit and cash flow improvement potential across the NI business.
  • Emerson is disappointed that NI chose to announce a strategic review and put in place a poison pill on January 13, 2023, rather than engaging privately and constructively.
  • Price Action: NATI shares traded higher by 12.7% at $52.92 in the premarket on the last check Tuesday.
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