Emerson to Acquire Remaining AspenTech Shares in $7.2 Billion Deal
Emerson Electric (EMR) has announced its intention to purchase the remaining shares of Aspen Technology (AZPN) that it does not currently own for approximately $7.2 billion in cash.
Emerson will pay $265 per share for the stake, representing a 3.9% premium over AspenTech's closing price on Friday. The deal values the remaining 43% stake in AspenTech at approximately $3.1 billion.
AspenTech shares surged to a record high following the announcement, buoyed by the premium offered by Emerson. Emerson currently owns 57% of AspenTech's outstanding shares. Upon completion of the acquisition, AspenTech will become a wholly owned subsidiary of Emerson.
Emerson CEO Lal Karsanbhai described the acquisition as "a key milestone in our portfolio transformation," adding that it would "advance our vision for software-defined control." The transaction is expected to close during the first half of 2023, at which point AspenTech shares will no longer trade on the Nasdaq exchange.
As of Monday morning, Aspen Technology shares had climbed over 3% to $263.64, reaching an all-time high. The stock has surged approximately 30% over the past year. Conversely, Emerson Electric shares declined about 1.5% on the news, but remain 35% higher than a year ago.