Stock Track | Aspen Technology Soars on Emerson's $15.3B Buyout Proposal

Stock Track
2024-11-05

Shares of Aspen Technology (AZPN) surged 5.5% in pre-market trading on Monday, November 5, 2024, after Emerson Electric (EMR) proposed to acquire the remaining outstanding shares of the industrial software company that it doesn't already own for $240 per share in cash.

Emerson, which already owns approximately 57% of AZPN's outstanding common stock after acquiring a majority stake in 2022, said the proposed transaction implies a fully diluted market capitalization for AZPN of $15.3 billion and an enterprise value of $15.1 billion. The offer price represents a 35% premium over AZPN's undisturbed share price of $177.84 as of August 6, 2024.

The acquisition would strengthen Emerson's automation software portfolio by making AZPN a wholly-owned subsidiary. Emerson expects the impact of the proposed transaction, including synergies, to be earnings-neutral for its fiscal 2025.

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