Industrial-automation systems maker Emerson Electric has decided to merge its software units with smaller rival Aspen Technology in a deal for about $11 billion.
The cash-and-stock deal is for about $160 per share. AspenTech shareholders will receive $87 and 0.42 share of the combined company for each share they currently own.
The price implies a premium of about 27 percent to AspenTech’s close on Oct. 6, before Bloomberg News first reported talks between the two companies, and about 13 percent to the stock’s last close on Friday.
Emerson would own 55 percent of the combined company, while AspenTech shareholders will own the rest. The new entity would retain AspenTech’s name and would be led by its current Chief Executive Officer Antonio Pietri.
The deal is expected to close in the second quarter of 2022.
Emerson provides automation solutions to automotive and oil and gas sectors, while AspenTech makes software for companies in mining, chemicals, manufacturing and pharmaceutical industries.
AspenTech has a market capitalization of about $9.49 billion, while Emerson is valued at more than $57 billion, according to Refinitiv Eikon data.