Zhitong Finance APP learned that Emerson Electric (EMR. US) agreed to merge two industrial software businesses (OSI Inc. and the Geological Simulation software business) with Aspen (AZPN. US) to form a new industrial software company with a deal value of about $11 billion. As of press time, Aiss was up more than 4% before the session and Emerson was down 0.9% before the session.
Emerson will acquire a 55 percent stake in the new company for $6 billion, and the transaction will take place in cash.
The transaction for the cash stock valued Esborne at approximately $160 per share; Shareholders in Aspen will receive $87 per share and 0.42 shares of the combined company.
Based on preliminary estimates, the new AspenTech expects fiscal 2022 annual revenue of $1.1 billion and adjusted EBITDA of $490 million, with double-digit annual spending growth by 2026.
Emerson also reiterated its basic sales guidance of 5%-6% for fiscal 2021, with an adjusted EPS guidance of $4.06-4.08.
The deal is Emerson's latest deal in the software space, which last year acquired Open Systems International for $1.6 billion.