WASHINGTON (Reuters) – U.S. industrial group Emerson Electric agreed on Wednesday to buy National Instruments (NI) for $8.2 billion, ending a nearly year-long acquisition of the measurement equipment maker.

Emerson’s cash offer of $60 per share represents a 49% premium to NI’s closing price as of January 12, 2023, the day before NI announced its strategic review. According to reports, Emerson first approached NI with an offer of $48 per share in May last year, and beat rivals Fortive and Keysight in the final round of bidding on Tuesday.
National Instruments provides software-connected automated test and measurement systems that enable companies to get products to market faster and at a lower cost. NI solutions help 35,000 customers in more than 40 countries around the world solve current and future test challenges and increase the speed and efficiency of their product development cycles.

Over the past few years, Emerson has executed a series of deals to streamline itself as an industrial automation supplier. The acquisition is expected to strengthen Emerson’s efforts to reinvent itself as a major global player in the automation industry, becoming a key pillar of Emerson’s strategy to build its capabilities in the high-growth test and measurement segment and enable it to leverage NI’s software Connect automation systems as part of its drive to profitability.

Emerson President and CEO Lal Karsanbhai said in an official statement, “With the expansion into test and measurement, Emerson will enhance its automation capabilities and gain access to a broader customer base that is critical to the product development cycle. Rely on NI solutions at all times. These capabilities allow Emerson to diversify into attractive and growing discrete markets such as semiconductors and electronics, transportation and electric vehicles.”