Emerson Electric bids to buy national instruments for nearly $7 billion
Emerson says it has been pursuing the equipment and instrumentation company since May
Check out what's clicking on FoxBusiness.com
Emerson Electric Co. on Tuesday disclosed a nearly $7 billion offer to buy National Instruments Corp., which it has been trying to buy for more than eight months.
Emerson Electric, a St. Louis-based technology and engineering company, said it was offering $53 a share in cash for National Instruments, giving it an enterprise value of $7.6 billion. The offer represents a 32% premium over National Instruments’ closing price from last Thursday, the day before it said its board was evaluating strategic alternatives and had already been approached by potential acquirers.
Emerson said it submitted the offer on Nov. 3, which improved upon an initial $48-per-share bid from May 25. Emerson also said it has tried to engage privately with the Texas-based equipment and instrumentation company about a potential deal since last May, but to no avail.
A visitor views the video wall in the lobby of Emerson Electric's headquarters building in St. Louis, Wednesday, Nov. 28, 2007. Emerson is making a bid to buy National Instruments, Monday, Jan. 16, 2023 for $7.6 billion. Emerson is offering $53 per share in cash, an enhanced offer that was made in November. (AP Photo/Tom Gannam)
Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. Emerson Electric has decided to make its offer known to shareholders, causing a jump in the stock market price. January 26, 2022.
WHEN EXECUTIVES STOP SELLING STOCK, A BIG DEAL MIGHT BE AHEAD
"Although Emerson would have preferred to reach an agreement privately, given NI’s announcement that it is undertaking a strategic review, and after refusing to work with us toward a premium cash transaction over the past eight months, we are making our interest public for the benefit of all NI shareholders," Emerson Chief Executive Lal Karsanbhai said.
MICROSOFT TARGETS $10B AI INVESTMENT
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EMR | EMERSON ELECTRIC CO. | 149.44 | +1.43 | +0.97% |
| NATI | NO DATA AVAILABLE | - | - | - |
A representative for National Instruments declined to comment.
CLICK HERE TO GET THE FOX BUSINESS APP
Shares of National Instruments jumped 15% to $54 in premarket trading. The company’s shares climbed 17% to a three-year high of nearly $48 last Friday after its board said it had launched a strategic review process to consider potential acquisitions and other strategic options.