AspenTech has acknowledged the receipt of Emerson’s offer. Credit: testing/ Shutterstock

Emerson Electric has offered to purchase the remaining shares of AspenTech it doesn’t own, valuing the deal at $15.1bn, in a bid to enhance its focus on industrial automation, reports Reuters.

In 2021, Emerson merged its software units with AspenTech, securing approximately a 55% stake in the joint venture.

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The offer of $240 per share in cash would require Emerson to invest an estimated $6.53bn for the remaining stake, based on Reuters’ calculations.

AspenTech has acknowledged the receipt of Emerson’s offer and stated that its board of directors will evaluate the proposal.

Emerson, with a history spanning over a century, has been refining its business portfolio to concentrate on technology, particularly as industries upgrade their manufacturing processes with advanced automation solutions.

Emerson’s bid for full ownership of AspenTech aims to advance software-driven control and bolster its automation software portfolio.

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The company believes this integration will enable seamless hardware-software solutions, drive cost efficiencies, and boost shareholder value.

The proposed transaction is not contingent on financing, Emerson confirmed.

However, the company will only proceed with the acquisition if it receives a recommendation from a special committee, which includes AspenTech-appointed directors and is supported by independent legal and financial advisors.

In addition to the acquisition proposal, Emerson is assessing options for its Safety and Productivity division, which includes operations not aligned with its core automation focus. This segment recorded sales of $1.4bn in fiscal 2024.

For fiscal 2025, Emerson anticipates its earnings per share to range between $5.85 and $6.05. In addition, Emerson has announced its plan to repurchase approximately $2bn of its common stock during fiscal 2025, with around $1bn expected to be bought back in the first quarter.