Emerson announced it has launched a $7.6 billion hostile bid for National Instruments (NASDAQ:NATI) (NI) after multiple rebuffed attempts.
In November 2022, the firm offered $53 per share, in cash, up from the initial $48 per share proposal submitted in May 2022.
In a statement, St Louis-based Emerson told investors that it would have preferred to do the deal privately, but felt forced to reveal its plans following “eight months of delay and lack of engagement.”
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"We have long admired NI and believe that combining its best-in-class electronic test and measurement product and software offerings with Emerson's industry-leading automation technology and software would enhance our ability to bring comprehensive solutions to a diverse set of end markets, accelerating growth and positioning Emerson to create significant shareholder value,” Emerson CEO Lal Karsanbhai told investors in a statement.
“We stand ready to work immediately with NI's Board and management team to reach an agreement that would provide a compelling premium and certain cash value today for all NI shareholders."
As for NI, the company said its board had received Emerson’s proposal in the context of its own strategic review process.
“NI welcomes Emerson’s interest and participation in the process, as NI has previously informed Emerson. NI determined to affirmatively initiate, announce and pursue a comprehensive strategic review process inclusive of other counterparties rather than negotiate exclusively with Emerson, which NI believes would be detrimental to shareholder interests,” the company said in a statement.
“NI notes Emerson’s expressed disappointment in this effort to maximize NI shareholder value.”
Shares of NI popped 12.6% following news of the takeover bid, trading around $52.90 by midday in New York.
Emerson, for its part, was down 6.5% at $91.59.
Contact Angela at angela@proactiveinvestors.com
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