Emerson, the Ferguson-based industrial-automation systems maker, said on Monday it would 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, the company said, adding that 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% to AspenTech’s close on Oct. 6, before Bloomberg News first reported talks between the two companies, and about 13% to the stock’s last close on Friday.
Emerson said on Monday it would own 55% of the combined company; 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.
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Emerson provides automation solutions to automotive and oil and gas sectors. 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.
Updated at 6 a.m. with confirmation of the deal.
