Emerson Announces Proposal To Acquire Remaining Outstanding Shares Of AspenTech

(RTTNews) - Emerson (EMR) announced three key strategic and financial actions in the final phase of its portfolio transformation. The company has made a proposal to acquire all outstanding shares of common stock of AspenTech (AZPN) not already owned by Emerson for $240 per share in cash. Emerson currently owns approximately 57% of AspenTech's outstanding shares of common stock. AspenTech would become a wholly owned subsidiary of Emerson. The proposal implies a fully diluted market capitalization for AspenTech of $15.3 billion and an enterprise value of $15.1 billion. Emerson expects the impact of the proposed transaction with synergies to be neutral to adjusted EPS in fiscal 2025.

Emerson has commenced a process to explore strategic alternatives, including a cash sale, for the Safety & Productivity segment, which comprises the remaining businesses not related to automation.

Also, Emerson plans to repurchase approximately $2.0 billion of its common stock in fiscal 2025, with approximately $1.0 billion of the repurchase expected to be completed in the first quarter of fiscal 2025.

Emerson declared a quarterly cash dividend increase to $0.5275 per share of common stock payable December 10, 2024 to stockholders of record November 15, 2024.

Shares of Emerson are up 6% in pre-market trade on Tuesday.