Industrial-automation systems maker Emerson Electric Co is looking to merge two of its business units with smaller rival firm Aspen Technology Inc, the Wall Street Journal reported.
The deal, worth approximately $11 billion, would see Emerson own 55% of the newly-formed company, while Aspen shareholders would retain the remaining 45%. The new company would also retain Aspen’s name and be led by its current Chief Executive Officer, Antonio Pietri. According to company officials, the deal would see Aspen’s value rise to approximately $160 per share.
For each share they currently own, Aspen shareholders will receive $87 and a 0.42 share of the combined company.
Emerson Electric Co aims to assist power plants and factories improve their operational efficiency, while Aspen focuses on developing software that aids companies in the chemical, manufacturing, mining, and pharmaceutical sectors.
According to Refinitiv Eikon data, Emerson Electric is valued at more than $57 billion, while Aspen has a market capitalization that narrowly exceeds $9.49 billion.
It seems as though this merger will certainly benefit both parties involved, as they each bring something valuable to the table. Only time will tell how lucrative these benefits will ultimately be.
