Emerson finalizes AspenTech acquisition

ST. LOUIS - Emerson (NYSE: EMR), a global industrial technology leader with a market capitalization of $62.4 billion and impressive gross profit margins of 52.4%, announced the completion of its acquisition of Aspen Technology, Inc. (AspenTech), a software company specializing in industrial optimization. With this move, AspenTech becomes a fully owned subsidiary of Emerson. According to InvestingPro data, Emerson maintains strong financial health with a Piotroski Score of 7 and annual revenue of $17.6 billion.

On Monday, Emerson’s tender offer for all outstanding AspenTech shares not already under its control concluded, with approximately 72% of the shares being validly tendered. Shareholders who did not tender their shares are entitled to receive $265.00 per share in cash, consistent with the tender offer price. Following the tender offer’s success, Emerson finalized the acquisition through a merger on March 12, 2025. The company’s strong financial position is evidenced by its healthy current ratio of 1.54, indicating sufficient liquidity to meet short-term obligations.

The acquisition marks a significant step in Emerson’s ongoing portfolio transformation. Lal Karsanbhai, President and CEO of Emerson, expressed gratitude towards Antonio Pietri, the outgoing CEO of AspenTech, for his leadership and partnership over the years. Vincent M. Servello has been appointed as the new President to lead the AspenTech business unit, bringing his extensive experience in industrial technology and corporate strategy to the role.

AspenTech’s financial results will be consolidated under Emerson’s Control Systems & Software segment, led by Business Group President Sabee Mitra. David Baker, who served as AspenTech’s CFO prior to the acquisition, will continue in his role within the new business unit.

The acquisition has led to the cessation of trading of AspenTech’s common stock on the NASDAQ. Goldman Sachs & Co. LLC, Centerview Partners LLC, and Davis Polk & Wardwell LLP served as financial advisors and legal advisor, respectively, to Emerson during the acquisition process.

Emerson, headquartered in Saint Louis, Missouri, is known for its advanced automation solutions, including intelligent devices, control systems, and industrial software. The company aims to optimize business performance through its technology and operational excellence. Based on InvestingPro analysis, Emerson currently trades near its Fair Value, with analysts projecting continued net income growth. The company has maintained its position as a reliable dividend payer, having raised dividends for 54 consecutive years, with a current yield of 1.91%. For deeper insights into Emerson’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 top US stocks.

This news is based on a press release statement and does not include any speculative or forward-looking statements. Emerson has not provided any updates to the statements made in the press release regarding future developments.

In other recent news, Emerson Electric Co. has confirmed its "best and final" offer of $265 per share to acquire Aspen Technology, a move that has faced opposition from activist investor Elliott Management. The tender offer is set to expire on March 10, 2025, contingent upon the minimum required number of shares being tendered. Meanwhile, Emerson has also extended its tender offer for AspenTech shares until March 10, 2025, as part of its ongoing acquisition process. Barclays analyst Julian Mitchell downgraded Emerson’s stock from Equalweight to Underweight, lowering the price target to $110, citing concerns about the company’s earnings outlook and exposure to industrial capital expenditures.

Additionally, Emerson has announced agreements for public offerings of Euro and U.S. dollar-denominated notes, securing €1 billion and $500 million, respectively. The proceeds, estimated at approximately $1.54 billion, are intended for general corporate purposes and funding a portion of the Aspen Technology acquisition. In another development, Emerson’s shareholders recently rejected proposals to declassify the board and reduce supermajority voting requirements during the 2025 Annual Meeting of Shareholders. The company did see the election of all four director nominees and the approval of its 2025 Employee Stock Purchase Plan. These recent developments highlight Emerson’s strategic moves and ongoing efforts to expand its industrial software capabilities.

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