Shares of Aspen Technology (AZPN) soared nearly 7% in pre-market trading on Monday, November 5, 2024, after Emerson Electric Company (EMR) proposed to acquire all remaining outstanding shares of the industrial software company that it does not already own.
Emerson, a leading provider of automation solutions, offered to pay $240 per share in cash for AZPN's remaining stock, valuing the company at a total of $15.3 billion on a fully diluted basis. The offer price represents a substantial 35% premium over AZPN's undisturbed share price of $177.84 before the news broke.
Emerson currently owns approximately 57% of AZPN's outstanding common stock following its majority stake acquisition in 2022. By acquiring the remaining shares, Emerson aims to strengthen its position in the industrial automation software market and unlock strategic synergies by fully integrating AZPN's operations.
Analysts view the proposed acquisition as a strategic move for Emerson, aligning with its focus on expanding its presence in the high-growth industrial software and automation solutions sector. AZPN's expertise in process optimization and asset management software complements Emerson's existing portfolio, potentially creating a formidable player in the industry.
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