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Emerson (NYSE:EMR) Acquires National Instruments for $60 a Share
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Emerson (NYSE:EMR) Acquires National Instruments for $60 a Share

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Emerson could soon announce a deal to acquire National Instruments. It could offer $60 a share to NATI shareholders.

Last updated: 10:08AM EST

National Instruments (NASDAQ:NATI) was up in morning trading on Wednesday after it was acquired by Emerson Electric (NYSE:EMR) for a total value of $8.2 billion at $60 per share in cash.

Lal Karsanbhai, President and CEO of Emerson commented, “With this expansion into test and measurement, Emerson will enhance its automation capabilities and gain a broader set of customers that relies on NI’s solutions at critical points along the product development cycle.”

First published:2:24AM EST

Bloomberg reported that Emerson Electric (NYSE:EMR) is inching closer to acquiring National Instruments (NASDAQ:NATI) for $60 a share. National Instrument makes automated test and measurement applications and virtual instrumentation software. 

According to the report, Emerson, which went past Fortive Corp. (NYSE:FTV), which was also in the race to acquire NATI, could announce a deal as soon as this week. Emerson has been pursuing this deal for a considerable amount of time. Earlier, during the Q1 conference call, EMR said it offered NATI $53 a share for acquisition. 

The move is part of Emerson’s strategy to create a company with a diversified and sustainable portfolio. Notably, this tech and engineering company is in the middle of a business transformation plan wherein it focuses on optimizing its portfolio to capitalize on high-growth industry verticals and technology segments. 

In 2022, Emerson combined its industrial software businesses with AspenTech (NASDAQ:AZPN). It owns the majority stake in the company (about 55%). Also, it acquired Fluxa. 

What’s the Prediction for EMR Stock?

Emerson’s focus on portfolio optimization and order growth will drive its revenue and earnings. Further, EMR is a Dividend Aristocrat and has increased its dividends for 66 years. However, Wall Street analysts are cautiously optimistic about EMR stock due to the macro uncertainty. 

It sports a Moderate Buy consensus rating on TipRanks based on six Buys and six Holds. Meanwhile, these analysts’ average price target of $99.18 implies 17.46% upside potential. 

Disclosure 

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