Emerson completes acquisition of NI to enhance global automation leadership

NI will become the new test and measurement division within Emerson

St. Louis, October 11, 2023 – Emerson (NYSE :EMR) today announced that it has completed the acquisition of NI(NASDAQ :NATI), a leading provider of software-connected automated test and measurement systems, for an equity value of $8.2 billion.

The acquisition of NI enhances Emerson’s position as a global automation leader and expands its opportunities to capitalize on key long-term trends such as offshoring, digital transformation, sustainability and decarbonization. NI brings a portfolio of software, controls and smart devices that is expected to accelerate Emerson’s revenue growth to 4-7% through the cycle organic growth target. NI increases Emerson’s end-market share in discrete markets, which will become Emerson’s second largest industrial segment with approximately 20 percent of sales coming from software, and increases Emerson’s share in high-growth industrial software markets. As Emerson realized $165 million in cost synergy opportunities by the end of year 5 by applying Emerson Management System best practices, NI increased Emerson’s gross margin and further adjusted EBITA margin growth opportunities.

“The acquisition of NI is an important milestone in our efforts to transform Emerson and achieve Emerson’s vision for portfolio growth, cohesion and end-market diversification,” said Lal Karsanbhai, President and CEO of Emerson. “We are excited to welcome NI employees to Emerson and benefit from our shared vision and culture, including our shared commitment to innovation, operational excellence and sustainability.” Together, we look forward to delivering more innovative and differentiated products to our customers, achieving our synergistic goals and increasing shareholder value.”

DO524

NI will become a new division within Emerson called Test and Measurement and will be integrated into the Software and Controls Group. The headquarters of the test and measurement business will continue to be located in Austin, Texas. NI reported 2022 revenue of $1.66 billion, operates in more than 40 countries, and serves approximately 35,000 customers in the high-growth semiconductor and electronics, transportation, and aerospace and defense markets.

Ritu Favre has been appointed Business Group President, leading the Test & Measurement division. Ms. Favre joined NI in 2019 as Senior Vice President and General Manager of the semiconductor business and was promoted to Executive Vice President of the Business unit in 2022, responsible for driving growth in semiconductors and electronics. Aerospace, Defense and Government; Transport; And portfolio business segment. She brings more than 30 years of technical experience to Emerson, with deep customer relationships and expertise in the emerging innovations and technologies that are driving electronic test and measurement forward.

Ms. Favre said, “I am excited to lead Emerson’s newly formed Test & Measurement business team and build on NI’s strong foundation to drive synergies, continue to improve growth and profitability, and help execute Emerson’s strategy as an automation leader.” “With our deep talent pool, impressive customer list, and powerful integrated innovation engine, we are well positioned to work closely with Emerson’s broader business units to enhance our ability to solve our customers’ toughest test and measurement challenges.”

Following the closing of the transaction, NI’s common stock has ceased trading on Nasdaq.