Emerson completes $8.2Bn acquisition of NI
MISSOURI, UNITED STATES — Emerson has completed the acquisition of National Instruments (NI), a provider of automated test and measurement systems, in an $8.2 billion all-cash deal.
This acquisition advances Emerson’s position as a global automation leader and expands its opportunities in key areas like nearshoring, digital transformation, and sustainability.
NI will become a new Test & Measurement segment within Emerson’s Software and Control group, headquartered in Austin, Texas.
In 2022, NI generated $1.66 billion in revenue and serves over 35,000 customers globally. Approximately 20% of NI’s sales are in software, increasing Emerson’s exposure to high-growth industrial software markets.
The deal is expected to accelerate Emerson’s organic revenue growth target of 4-7% annually. Emerson also sees $165 million in cost synergy opportunities by year 5 through application of best practices from the Emerson Management System.
Emerson President and CEO Lal Karsanbhai expressed enthusiasm about the deal, saying, “Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness and end market diversification across Emerson’s portfolio.”
With the completion of this acquisition, trading of NI’s common stock on the Nasdaq has been discontinued.
Emerson is a multinational corporation headquartered in Missouri with $19.6 billion in annual revenue. It is ranked among Outsource Accelerator’s top 40 business process outsourcing companies in the Philippines.
