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Emerson Electric Co. announced Monday its plans to purchase the remaining 43% of Aspen Technology Inc. it does not already own for $7.2 billion, marking a major step in its strategic transformation toward industrial software solutions.

The transaction, which values AspenTech at an enterprise value of $16.8 billion, involves Emerson offering $265 in cash per share for the outstanding minority stake. Emerson, which currently holds 57% of AspenTech following a $6 billion investment in 2021, will make AspenTech a wholly owned subsidiary once the deal closes. AspenTech's shares will be delisted from the Nasdaq.

Strengthening a Strategic Partnership

Lal Karsanbhai, Emerson’s president and CEO, said the acquisition reinforces the company’s vision of advancing software-defined control in industrial operations. "This transaction marks a key milestone in our portfolio transformation," Karsanbhai said. "We are excited to fully integrate AspenTech into Emerson to provide customers with innovative solutions for evolving industrial challenges."

AspenTech CEO Antonio Pietri praised the collaboration with Emerson and highlighted the deal’s long-term potential. "This agreement is a testament to the dedication of AspenTech's employees, who have executed on our partnership and transformed the business to position it for future success," Pietri said.

Industrial Software Focus

Emerson is a technology company that supports hybrid, process, and discrete manufacturers by optimizing operations and achieving sustainability goals. AspenTech specializes in software for optimizing asset design, operation, and maintenance in complex industrial environments.

The relationship between the two companies began in 2021 when Emerson acquired a majority stake in AspenTech and integrated its own industrial software units — OSI Inc. and Geological Simulation Software — into AspenTech’s portfolio.

Financing and Timeline

Emerson plans to fund the acquisition using cash on hand and debt financing. The deal is expected to close in the first half of 2025, subject to customary closing conditions.

Legal Teams

The acquisition involves legal teams from top firms:

• Davis Polk & Wardwell LLP advises Emerson, with a team led by corporate partners Phillip R. Mills and Cheryl Chan, supported by experts in executive compensation, intellectual property, tax, and litigation.
• Skadden, Arps, Slate, Meagher & Flom LLP represents AspenTech, with mergers and acquisitions partners Graham Robinson and Chadé Severin, alongside specialists in litigation, tax, labor law, and intellectual property.

Industry Impact

By acquiring AspenTech outright, Emerson positions itself to dominate the industrial software market, leveraging AspenTech’s expertise to meet rising demand for digital transformation in manufacturing and other sectors. The move aligns with Emerson’s broader strategy to drive growth through advanced software solutions.