Emerson's $8.2 Billion Game-Changer: NI Acquisition
Emerson is pleased to announce the successful conclusion of its $8.2 billion acquisition of NI, a distinguished provider of software-connected automation testing and measurement systems. This strategic move not only fortifies Emerson's global standing in the automation industry but also positions the company favorably within key long-term industry trends, including nearshoring, digital transformation, sustainability, and decarbonization.
With the addition of NI to its portfolio, Emerson gains access to a suite of software solutions, control systems, and intelligent devices that are anticipated to accelerate revenue growth, aligning with Emerson's organic growth target of 4-7%. The acquisition further enhances Emerson's presence in the discrete market segment, emerging as the company's second-largest industry subset. NI's software sales, representing approximately 20% of the business, reinforce Emerson's position in the high-growth industrial software market. Additionally, NI contributes positively to Emerson's gross profit, with cost synergies expected to reach $165 million by the end of the fifth year, supported by the application of Emerson's established management practices, ultimately leading to an expansion of adjusted EBITA profit margins.
Under the new arrangement, NI will operate as a dedicated division within Emerson, officially known as the Testing and Measurement division. It will be integrated into Emerson's Software and Control Group, with its headquarters remaining in Austin, Texas.
In 2022, NI reported an impressive $1.66 billion in revenues, serving a vast customer base comprising over 35,000 clients across more than 40 countries. These clients span various high-growth sectors, including semiconductors and electronics, transportation, aerospace, defense, and other related industries.
Emerson has appointed Ritu Favre as the President of the Business Group, overseeing the Testing and Measurement division. Ms. Favre's journey with NI began in 2019 when she assumed the role of Senior Vice President and General Manager of the Semiconductor Business. Her remarkable leadership led to a promotion in 2022 when she was named the Executive Vice President of the division, tasked with driving growth across semiconductor and electronics, aerospace, defense, government, transportation, and portfolio business units. With over three decades of technical expertise and a profound understanding of emerging innovations and technologies, Ms. Favre brings invaluable customer relationships and deep knowledge to propel electronic testing and measurement into the future.
As a result of the successful transaction, NI's common stock has ceased trading on the NASDAQ.
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