In the combined company, Emerson Electric will hold a 55% stake, while AspenTech’s shareholders will own the remaining 45% stake
Emerson reportedly in talks of a $11bn deal for its software businesses with AspenTech. (Credit: Raysonho @ Open Grid Scheduler / Grid Engine / Wikimedia.org)
US-based manufacturing company Emerson Electric is mulling to merge two of its software businesses with industrial optimisation software provider Aspen Technology (AspenTech) in a cash-and-stock deal worth around $11bn.
The proposed deal values AspenTech at $160 per share, reported the Wall Street Journal, citing officials from the two companies.
Based in Massachusetts, AspenTech provides software and services for the process industries. It offers them enterprise asset performance management, asset optimisation, and asset performance monitoring solutions.
According to the publication, AspenTech’s shareholders will get $87 in cash and will be issued 0.42 shares of the combined company for every AspenTech share they own.
Emerson Electric will hold a 55% stake, while AspenTech’s shareholders will own the remaining 45% stake in the combined company.
The deal is expected to be announced by the parties early this week.
The publication reported that the combined company will be called AspenTech and Antonio Pietri, the current CEO of the Massachusetts-based software firm, will continue in the same role.
By combining its process modelling expertise with artificial intelligence (AI) and machine learning, AspenTech claims to deliver unique insights for organisations. These insights are used by organisations for enhancing their decision making and expediting their digital transformation.
The company caters to mining, chemical, pharmaceutical, consumer packaged goods, food and beverage, and other industries.
On the other hand, Emerson Electric is focused on two core business platforms, which are automation solutions and commercial and residential solutions.
The company’s automation solutions division offers software for operations management, automation and control, advanced industry solutions, and others.