Emerson Begins Acquisition Talks with National Instruments

2 months ago Automation World

When opportunity knocks more than once, the second time is usually a bit louder. Emerson’s persistent rapping may have proven fruitful. National Instruments (NI) has begun engaging in conversations regarding Emerson’s January 17 public proposal to acquire NI for $53 per share in cash at an implied enterprise value of $7.6 billion. 

Following public statements by Emerson and NI, management teams and advisors have started a process that Emerson believes will lead to the purchase of NI, adding an adjacent portfolio of electronic test and measurement offerings and a technology stack of intelligent devices, controls and software that complements Emerson’s technology stack in its core automation markets. 

Anticipating favorable long-term trends and an estimated total addressable market (TAM) of $35 billion, Emerson foresees test and measurement as a fast-growing market segment, and it believes the acquisition would expand and diversify its customer base within end markets such as semiconductor, automotive, aerospace and defense. Emerson expects the transaction to contribute to the growth of its adjusted earnings per share (EPS) in the first year, meet its communicated returns threshold and improve its overall growth.

The NI acquisition could benefit Emerson in several possible ways, noted Tobey Strauch, an independent principal industrial controls engineer based in Fremont, California. “First, the LabView Suite and modular hardware would provide offerings for Emerson that it currently is lacking,” she said. Though Emerson has VersaMax Micro PLCs and compact controllers, it is known for distributed control applications in the United States, as well as its large PACSystems modules, explained Strauch. 

NI’s modular solutions with data-acquisition (DAQ) systems may be more modern than some of Emerson’s portfolio, Strauch continued. “Also, the LabView software suite is most popular in testing arenas and research and development,” she said. LabView’s capacity to be used in controller-area-network (CAN) bus situations could complement the HART products that Emerson has, noted Strauch, “but in different arenas that would include aerospace, circuit-board testing, electronics development for rockets and other Department-of-Defense-type systems, fuel-cell development and testing, as well as the ability to get test data to the edge with store and forward capabilities.” 

Because NI’s products can be found in many production assembly lines where testing is needed, the acquisition could give Emerson the ability to grow into different markets, as well, said Strauch. “It also would mean that Emerson could harness the LabView visual programming environment,” she said. “Though LabView may be code-intensive, the software has the capacity to adapt to Python, C# and other types of software that make it easy to attach a control system to a database with seamless integration. NI also has cloud interfaces for its applications. Emerson may also just be simply interested in harnessing the testing technology from NI to make its electrical components better by owning a piece of the testing in the supply-chain flow.” 

Strauch noted that the companies could also combine their technologies to create automation solutions that are easier to implement and operate. “Time will tell, but the merging of the two technology companies can only provide better services for the industrial automation world,” she said.

About the Author

 Amanda Del Buono | Digital Engagement Manager

Amanda Del Buono is the Digital Editor at Control (part of the Industrial Group at Endeavor Business Media, which includes Automation World). Prior to this role, Amanda was the Associate Editor at Beverage Industry magazine. Amanda earned a Bachelor degree in Journalism from The University of Missouri – Columbia, and currently lives in Illinois. 
Continue reading...

Read On "Automation World"
More News On "Automation World"
29 days ago - Alameda County landlords owed thousands in rent, call for an end to eviction moratorium 29 days ago - Monday Feb. 27 COVID-19 update: 4 deaths in Douglas County 29 days ago - State basketball preview: 6A, 5A tournaments return to Weber State’s Dee Events Center this week 29 days ago - One Wealth Advisors LLC invests in Enovix Co. (NASDAQ:ENVX) 29 days ago - Uncommon length makes Pleasant Valley’s 2-3 a no-scoring zone 29 days ago - Study: Back-to-back hurricanes likely to come more often 29 days ago - What’s Happening Vegas? – March 2023 1 month ago - Osceola County community events calendar for 03/01/2023 1 month ago - North Adams, East Clinton, Unioto still alive 1 month ago - North Korea holds rare meeting on farming amid food shortage 1 month ago - 'Dilbert,' Scott Adams lose distributor over racist remarks 1 month ago - Soap or phone call? Colo. lawmakers want to make prison phone calls free 1 month ago - EXPLAINER: Windstorm was likely a derecho. What is that? 1 month ago - What's Happening in Las Vegas for this Year's March Madness 1 month ago - Outsmarting humans just one step for AI video game players 1 month ago - 'Cocaine Bear' gets high with $23.1M, 'Ant-Man' sinks fast 1 month ago - 'Everything Everywhere All at Once' dominates at SAG Awards 1 month ago - Digital Transformation: The Revolutionary Impact of Technology in Africa 1 month ago - ShotSpotter (NASDAQ:SSTI) Price Target Increased to $44.00 by Analysts at Lake Street Capital 1 month ago - Season 3 of Outer Banks disappoints critics; watch only if you were a die-hard fan of earlier seasons, they suggest 1 month ago - Board Game and Card Game Market Size in 2023 with [ STATISTICS FIGURES] Future Development Status and Forecast up to 2029 1 month ago - Tabletop Gaming Market Size in 2023 NEW TECHNOLOGICAL DEVELOPMENT and Latest Innovation in Analytics Sector till 2029 1 month ago - Celona Offers Most Comprehensive Private 5G Solutions for U.S. and Foreign Markets 1 month ago - ShotSpotter, Inc. (NASDAQ:SSTI) to Post Q1 2023 Earnings of ($0.03) Per Share, Northland Capmk Forecasts 1 month ago - Asian shares track Wall Street decline on hot economic data 1 month ago - Final Nebraska high school swimming and diving season leaders 1 month ago - Girls BB: Saluting Section Champions 1 month ago - Tens of thousands protest Mexico electoral reforms 1 month ago - Third finals appearance the charm for Hortonville's Skebba; Stoffel makes history for Appleton North 1 month ago - Medical Blades Market Business Opportunities, Top Players and Forecast 2030 1 month ago - Central College Dutch Sports Update – 2/26/2023 1 month ago - Buhro takes individual crown as Oak Harbor earns sectional championship 1 month ago - Nebraska conservatives set sights on education takeover – Associated Press 1 month ago - Back-to-back: Minico successfully defends 4A state wrestling championship 1 month ago - Here are Saturday's high school sports results 1 month ago - Farewell, Fontana: NASCAR's last weekend at a racing gem 1 month ago - Kansas Democrats pick Repass as their new chair despite campaign baggage 1 month ago - Tesla’s Global Engineering HQ in Palo Alto — Opening Party Highlights (Pics, Videos, Quotes) 1 month ago - San Ann'as Pizza and Mexican celebrating 45th anniversary 1 month ago - L.A. on the Record: The Senate takes one more look at Garcetti 1 month ago - Dodge County real estate transfers 1 month ago - How UNL instructors are tackling the emergence of ChatGPT and other AI in higher education 1 month ago - Some Democratic-led states seek to bolster voter protections 1 month ago - Casey Vaughan: Only rain should go down a storm drain 1 month ago - Nebraska conservatives set sights on education takeover 1 month ago - West Michigan Conference basketball: Girls and boys roundup from Feb. 24, 2023 – CatchMark Sports 1 month ago - Jeff Yost: Look Upstream 1 month ago - Brokers Set Expectations for ShotSpotter, Inc.'s Q4 2023 Earnings (NASDAQ:SSTI) 1 month ago - Building affordable homes in Fremont 1 month ago - Local chef to open farm-to-table eatery in Fremont 1 month ago - Jeanna Wilcoxen Murder: Where Is Jeremiah Connelly Now? 1 month ago - More than 70 soldiers killed in Burkina Faso, extremists say 1 month ago - Clyde Council to consider citizens raising chickens in town 1 month ago - Wilhelm: More on Jacksons, Willow Hill and efforts to share insight into African American history 1 month ago - STATE HIGH SCHOOL WRESTLING TOURNAMENTS: Crowded at the top ... Trojans third, but well within striking distance in 5A tournament 1 month ago - Bulldog wrestlers have solid day at state 1 month ago - High school boys basketball: 6A/5A second round recap 1 month ago - Head-To-Head Analysis: Amprius Technologies (NYSE:AMPX) & Novanta (NASDAQ:NOVT) 1 month ago - Here are Friday's high school sports results 1 month ago - It’s Official: California Will Be Tesla’s Engineering & AI Headquarters
free geoip