Emerson Electric Co. (EMR) entered a merger agreement on January 27, 2025, to acquire Aspen Technology, Inc. (AZPN) through a tender offer, valuing the company at about $16.8 billion.
Under the terms of the agreement, Emerson plans to buy all AspenTech shares it doesn’t already own by offering $265.00 per share in cash through a tender offer, representing a premium of 3.86% from the stock’s last close.
Aspen Technology is a global provider of software solutions for asset performance management, monitoring, and optimization, helping industries operate more efficiently and sustainably across sectors such as chemicals, energy, pharmaceuticals, and manufacturing.
Emerson Electric is a global technology and engineering company that provides innovative solutions in automation, industrial equipment, and commercial and residential systems, helping industries optimize operations, enhance sustainability, and improve efficiency across various sectors.
In November of last year, Emerson Electric, which owns 57.4% of Aspen Technology, proposed acquiring all remaining outstanding shares of AspenTech’s common stock for $240 per share in cash. This proposal came three years after the two companies held merger discussions in 2021, which ultimately led to Emerson transferring its OSI Inc. and Geological Simulation Software business to AspenTech instead.
Before Emerson’s November offer, AspenTech’s stock was trading at $237.59 per share. Following the proposal, AspenTech formed a special committee to evaluate the offer.
Once the transaction is complete, which is expected in the first half of 2025, AspenTech will become a wholly owned subsidiary of Emerson.
Emerson’s deal to take AspenTech private will be funded through a combination of cash on hand and debt financing.
Qatalyst Partners and Citi acted as financial advisors, while Skadden, Arps, Slate, Meagher & Flom provided legal counsel to AspenTech. Goldman Sachs and Centerview Partners served as financial advisors, with Davis Polk & Wardwell offering legal counsel to Emerson.
Emerson is acquiring AspenTech for 15.28 times its sales.
For more extensive details on this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Aspen Technology, Inc. (AZPN) by Emerson Electric Co. (EMR)
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Editor’s Note: Baranjot Kaur contributed to this article