{"id":2464,"date":"2023-04-20T05:55:21","date_gmt":"2023-04-20T05:55:21","guid":{"rendered":"https:\/\/35.94.173.37\/blog\/?p=2464"},"modified":"2026-07-06T20:56:39","modified_gmt":"2026-07-06T20:56:39","slug":"emerson-electrics-acquisition-of-ni","status":"publish","type":"post","link":"https:\/\/www.apexwaves.com\/blog\/emerson-electrics-acquisition-of-ni\/","title":{"rendered":"Emerson Electric\u2019s Acquisition of NI"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.apexwaves.com\/blog\/wp-content\/uploads\/2023\/04\/Emerson-Acquisition-of-NI.mp3\"><\/audio><figcaption class=\"wp-element-caption\"><strong><em>Listen to this blog post here.<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">On April 12, 2023, technology and software company Emerson Electric Co. officially announced that it was acquiring National Instruments (NI) for $60 in cash per share (a value of $8.2 billion). This announcement comes almost a year after Emerson\u2019s first bid and after multiple delays in the final bid deadline. Emerson beat out industrial technology company Fortive in an incredibly close bidding competition, so what made Emerson the perfect choice for this agreement?<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left has-black-color has-text-color has-link-color wp-elements-2d3dac1935bd86dc1959a6689fda8de0\" style=\"font-size:25px\"><strong>A Company Built on Innovation<\/strong><\/h2>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">Founded in 1890, <strong>Emerson <\/strong>has over 130 years of experience in the industrial, consumer, and commercial marketplaces. The company focuses on two distinct yet complementary business platforms- commercial &amp; residential solutions and automation solutions.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">When it comes to commercial &amp; residential solutions, Emerson offers energy-saving technologies to construct environmentally friendly infrastructure and improve operational efficiency. The technological tools and solutions developed by the company include tools for refrigeration, heating and AC, professional vacuums, commercial building thermostats, and more.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">Emerson also partners with businesses and corporations across multiple industries to create individualized automation solutions. The company has automation experience ranging from projects to operations, and its goal is to assist its partners in achieving specified goals and increasing overall performance.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">Emerson\u2019s product and software portfolio is an excellent complement to NI, whose own modular hardware, software, and services for automated test and measurement systems have quickly become regarded as the industry standard. In fact, the test and measurement market was one of the four priority adjacencies that Emerson outlined at its 2022 Investor Conference.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">In a statement, Lal Karsanbhai (president and CEO of Emerson) said \u201cWe are pleased to reach an agreement with NI, whose best-in-class test and measurement product and software offerings accelerate Emerson\u2019s progress toward a cohesive, higher growth and higher margin automation portfolio\u201d.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.apexwaves.com\/blog\/wp-content\/uploads\/2023\/04\/scott-graham-5fNmWej4tAA-unsplash-1-1-1024x683.jpg\" alt=\"Closeup side view two laptops on a table with two men having a business meeting\" class=\"wp-image-2020\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-left has-black-color has-text-color has-link-color wp-elements-6476c86275a6494ec99c6c4aa9fe8737\" style=\"font-size:25px\"><strong>Benefits of the Acquisition<\/strong><\/h2>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\"><strong>Collaborative Innovation.<\/strong>&nbsp;As mentioned previously, NI\u2019s technology infrastructure complements Emerson\u2019s own. NI\u2019s open and interoperable software platform, paired with its versatile modular testing systems, enables users to take full advantage of the configurability and scalability of the system. In a complex and changing test and measurement market, this is incredibly advantageous. Both Emerson and NI emphasize innovation, and the two companies combined will be able to expedite and expand the development of innovative products for customers by using their complementary skills. By accounting for 20% of revenue, NI will introduce Emerson to more high-growth industrial software prospects. Additionally, expanded professional development and promotion possibilities will be available to company employees, allowing them to truly #engineerambitiously.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\"><strong>Mutual Growth.<\/strong>&nbsp;Through this acquisition, Emerson will broaden and extend its client base in the quickly growing test and measurement market. With a diverse end-market mix that includes industries such as aerospace, defense, semiconductor, and transportation, NI is anticipated to be well-positioned to take advantage of megatrends that lead to growth. Additionally, NI will broaden Emerson\u2019s reach into the design and validation phase of the product lifecycle- giving clients early access to areas including semiconductor and electric car production.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\"><strong>Financial Benefits.<\/strong>&nbsp;Emerson\u2019s 2022 Investor Conference discussed that a deal with NI was anticipated to immediately contribute to Emerson\u2019s long-term financial goals, with strong market positions held by NI anticipated to produce consistent underlying growth. With the companies combined, NI will increase Emerson\u2019s immediate gross margin and sizeable recurrent revenue. Strong growth, appealing gross margins, and the potential for operating margin expansion through synergies will all work together to provide satisfactory returns. Emerson reportedly plans to use its size to boost efficiency and eliminate redundant expenses across multiple departments. Previously successful productivity levers will provide opportunities to improve NI\u2019s free cash flow generation.<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-align-left\">So, when does this deal go through? The deal is anticipated to close during the first half of Emerson\u2019s 2024 fiscal year. In accordance with the terms of the deal, NI shareholders would get $60 in cash for each share they own, which is a 49% premium to the stock\u2019s closing price on January 12, 2023.<\/p>\n\n\n\n<p class=\"has-text-align-left has-black-color has-text-color has-link-color wp-elements-fd57572479935d49aff286142e65ff68\" style=\"font-size:25px\"><strong>Additional Information<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.emerson.com\/en-us\/news\/2023\/04-emerson-ni-acquisition\">Emerson Press Release<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On April 12, 2023, technology and software company Emerson Electric Co. officially announced that it was acquiring National Instruments (NI) for $60 in cash per share (a value of $8.2 billion). This announcement comes almost a year after Emerson\u2019s first bid and after multiple delays in the final bid deadline. Emerson beat out industrial technology [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[98,129,229,359,393,859,991],"class_list":["post-2464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-instruments","tag-business","tag-collaboration","tag-emerson","tag-merger","tag-national-instruments","tag-solutions","tag-tagsautomation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/posts\/2464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/comments?post=2464"}],"version-history":[{"count":3,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/posts\/2464\/revisions"}],"predecessor-version":[{"id":3855,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/posts\/2464\/revisions\/3855"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/media\/2465"}],"wp:attachment":[{"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/media?parent=2464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/categories?post=2464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apexwaves.com\/blog\/wp-json\/wp\/v2\/tags?post=2464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}