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Emerson Electric nears $8 billion deal for National Instruments - sources

Published 04/11/2023, 09:57 PM
Updated 04/12/2023, 12:20 AM
© Reuters. FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid
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By David Carnevali and Anirban Sen

(Reuters) -Industrial conglomerate Emerson (NYSE:EMR) Electric is in advanced talks to acquire National Instruments (NASDAQ:NATI) Corp in a deal that could value the measurement equipment maker at about $8 billion, people familiar with the matter said on Tuesday.

Emerson prevailed over other companies that participated in the sale process, including Fortive (NYSE:FTV) Corp and Keysight Technologies (NYSE:KEYS) Inc, with an offer of about $60 per share for National Instruments, the sources said.

The deal could be announced as soon as this week, the sources said, cautioning that the talks could fall apart at the eleventh hour. The sources requested anonymity as these discussions are confidential.

Spokespeople for National Instruments, Emerson, Fortive and Keysight did not immediately respond to requests for comment.

National Instruments launched a formal sale process in January after Emerson threatened to challenge its board if it did not engage in deal negotiations. Emerson dropped its hostile bid once the auction for National Instruments got underway.

Reuters first reported in March that Emerson, Fortive and Keysight were through to the final round of bidding for National Instruments, after breaking news of Emerson's interest in January.

© Reuters. FILE PHOTO: Emerson Electric Co is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., January 13, 2020. REUTERS/Brendan McDermid

Austin, Texas-based National Instruments specializes in the production of automated testing and measurement tools for the semiconductor, transportation, aerospace and defense industries.

Emerson has been involved in a string of deals over the last few years to reshape itself into a provider of industrial automation products and services. Last year, it sold a majority stake in its climate technologies unit to Blackstone (NYSE:BX) Inc in a deal that valued the business at $14 billion.

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