Emerson Electric’s software division announces a merger with rival Aspen Technology in $11 billion deal
Emerson Electric said today it has agreed to merge its software businesses with smaller rival Aspen Technology in a deal worth around $11 billion. Emerson said the merger will help boost its industrial automation business that caters to a swathe of sectors ranging from utility and mining to chemicals and automotive.
According to the announcement, the combined industrial software company will comprise Emerson’s grid modernization technology and geological simulation software, and AspenTech’s software offerings to mining, manufacturing, and pharmaceutical industries.
Founded more than a century ago and headquartered in St Louis, Missouri, Emerson is a global technology and engineering company providing innovative solutions for customers in industrial and residential markets. The company was founded in 1890 by John Wesley Emerson.
“We saw an attractive opportunity to accelerate our software strategy to capitalize on the rapidly evolving industrial software landscape and advance Emerson’s high-value portfolio journey,” said Lal Karsanbhai, President and Chief Executive Officer of Emerson. “Our customers are increasingly seeking partners to help realize stronger performance as they automate workflows in their facilities to optimize operations. New AspenTech will become an engine for both acquisition and organic growth.”
The Boston, Massachusetts-based Aspen Tech was founded in 1981 by Lawrence Evans. The company creates AI-enabled asset optimization software to help the world’s leading industrial companies run their operations safer, greener, longer, and faster, the company said on its website. Together with its subsidiaries, Aspen Tech develops and supplies integrated software and services that enable the process.