Emerson to acquire controlling stake in AspenTech
Emerson and AspenTech have announced that the companies have entered into an agreement to contribute Emerson’s industrial software businesses — OSI Inc. and the Geological Simulation Software business — to AspenTech to create what they call “a diversified, high-performance industrial software leader with greater scale, capabilities and technologies.”
Emerson will also contribute US$6 billion in cash to “new AspenTech”, which will be received by AspenTech shareholders, in exchange for a 55% stake in new AspenTech.
The transaction is intended to accelerate Emerson’s software investment strategy as the company continues to build a higher growth, more diversified and sustainable portfolio, by creating an industrial software company scale and relevancy in a fast-paced and evolving market. The new company will retain the name AspenTech.
“We saw an attractive opportunity to accelerate our software strategy to capitalise on the rapidly evolving industrial software landscape and advance Emerson’s high value portfolio journey,” said Lal Karsanbhai, President and Chief Executive Officer of Emerson. “Our customers are increasingly seeking partners to help realise stronger performance as they automate workflows in their facilities to optimise operations. New AspenTech will become an engine for both acquisition and organic growth.”
“Today’s announcement marks an exciting new era,” said Antonio Pietri, President and Chief Executive Officer of AspenTech. “This transaction enables us to advance our position as a premier, highly diversified industrial software leader poised for significant growth, strong financial performance and a vehicle to drive future software acquisitions, while providing immediate cash value to AspenTech shareholders.
“The new AspenTech will benefit from a larger and more diversified market, which we will be able to serve with a comprehensive software portfolio, an expanded global sales channel and an even stronger balance sheet reinforced by Emerson. Additionally, this transaction expands our ability to support customers’ global sustainability ambitions.”
The transaction is expected to close in the second calendar quarter of 2022 and is subject to approval by AspenTech shareholders, regulatory approvals and other customary closing conditions.
CSIRO solar venture nets record seed funding
FPR Energy is a new venture that aims to help reduce industrial emissions in heavy industries,...
Major US defence company sets up in SA
US defence technology company Sierra Nevada Corporation has opened an Australian subsidiary, SNC...
Queensland boosting local manufacturing
The Queensland Government has announced it will boost homegrown manufacturing with an expansion...
