NI to explore options including sale, amid interest from Emerson Electric - sources (updated)
13/01/2023 21:16
(Adds details, rewrites throughout)
By Anirban Sen and Priyamvada C
Jan 13 (Reuters) - NI Corp NATI.O , a provider of
testing and measuring equipment, said on Friday it was exploring
strategic options after acquisition interest from companies that
people familiar with the matter said include Emerson Electric Co
EMR.N .
NI shares surged to a near four-year high after the
announcement of the review, which the company said would include
"a full range of available strategic, business and financial
alternatives, including solicitation of interest from potential
acquirers and other transaction partners, some of whom have
already approached the company."
Shares of the company, which also makes software, closed up
nearly 17% at $46.97 apiece on Friday, giving it a market
capitalization of over $6 billion.
The acquisition interest from potential suitors, according
to the sources, forced NI to adopt a so-called poison pill,
which would be triggered if a person or a group's ownership of
the firm reaches 10%. The limit is 20% in case of passive
institutional investors.
The sources, who requested anonymity as the discussions are
confidential, cautioned that the talks with suitors including
Emerson are subject to market conditions, and a deal is not
guaranteed.
Texas-based NI, formerly known as National Instruments,
specializes in making automated testing and measurement tools to
aid in research and validation of new technologies. It serves
the semiconductor, transportation, aerospace and defense
industries.
Large industrial businesses are accelerating their efforts
to automate operations amid a shortage of factory workers, and
Emerson has doubled down on its software strategy to capture
that shift.
In October, Emerson sold a majority stake in its climate
technologies unit to Blackstone Inc BX.N in a deal that valued
the business at $14 billion.
At the time, Emerson said it would use the proceeds from the
deal for “strategic M&A to strengthen and diversify its
automation portfolio in four targeted adjacent markets."
Last year, Emerson also sold its division that makes waste
disposal equipment and hot water dispensers to Whirlpool Corp
WHR.N and merged its software units with smaller rival Aspen
Technology AZPN.O .
Emerson Electric did not immediately respond to a request
for comment.
BofA Securities and Wachtell, Lipton, Rosen & Katz are
advising NI.
(Reporting by Anirban Sen in New York; Additional reporting by
Priyamvada C in Bengaluru; Editing by Krishna Chandra Eluri and
Cynthia Osterman)
((Priyamvada.C@thomsonreuters.com https://twitter.com/priyamouli1812?lang=en;))