Aspen Technology, Emerson announce deal valued at $11 billion to create new AspenTech software company

Shares of Aspen Technology Inc. /zigman2/quotes/201282485/composite AZPN -0.65% rallied 4.7% and Emerson Electric Co. /zigman2/quotes/200181610/composite EMR -0.70% fell 0.9% after the companies announced an agreement in which Emerson's industrial software business will be contributed to Aspen to create a new AspenTech software company with greater scale, capabilities and technologies. As part of the deal, Emerson will also contribute $6.0 billion in cash in exchange for a 55% stake in the newly formed AspenTech. Under the agreement's terms, AspenTech shareholders will receive $87 per share in cash and 0.42 shares of the new AspenTech, implying a total consideration of $160 a share, and deal with a total equity value of about $11 billion before expected synergies. That represents a 13.0% premium to Aspen's Friday's closing price of $141.55. After the deal closes, which is expected to occur in the second quarter of 2022, the new AspenTech will trade on the Nasdaq under the ticker symbol "AZPN." Aspen's stock has gained 8.7% year to date through Friday and Emerson shares have rallied 20.2%, while the S&P 500 has advanced 16.9%.

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Aspen Technology Inc. (New)

US : U.S.: Nasdaq

$ 201.88

-1.32 -0.65%

Volume: 166,640

March 22, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$13.16 billion

Rev. per Employee

$559,924

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Emerson Electric Co.

US : U.S.: NYSE

$ 83.40

-0.59 -0.70%

Volume: 3.25M

March 22, 2023 4:03p

P/E Ratio

26.48

Dividend Yield

2.49%

Market Cap

$47.99 billion

Rev. per Employee

$216,760