Emerson has recently closed its acquisition of NI, a leading provider of software-connected automated test and measurement systems. Accordingly, Emerson completed the deal at an equity value of $8.2 billion. The acquisition of NI advances Emerson’s position as a global automation leader. Furthermore, it expands its opportunity to capitalize on key secular trends like nearshoring, and digital transformation. In addition, sustainability and decarbonization.

NI brings a portfolio of software, control, and intelligent devices. Most importantly, this will accelerate Emerson’s revenue growth aligned to its 4-7% through the cycle. NI increases Emerson’s end market exposure in discrete markets, which will be Emerson’s second largest industry segment. Moreover, with approximately 20% of sales in software, NI also increases Emerson’s exposure to high-growth industrial software markets.

In addition, NI increases Emerson’s gross profit, with further adjusted EBITA margin expansion opportunities as Emerson delivers an expected $165 million of cost synergy opportunities by the end of year 5 through the application of best practices from the Emerson Management System.

“Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness, and end market diversification across Emerson’s portfolio,” said Emerson President and Chief Executive Officer Lal Karsanbhai.

In addition, Karsanbhai said, “Together, we look forward to providing our customers more innovative and differentiated products, executing on our synergy targets and delivering increased shareholder value.”

Drive Synergies, Continue Growth

NI will become a new reported segment within Emerson called Test & Measurement and will be consolidated into the Software and Control group. The Test & Measurement business will continue to be headquartered in Austin, Texas. NI reported $1.66 billion in 2022 revenue and operates in more than 40 countries. Moreover, it serves approximately 35,000 customers across high-growth semiconductor and electronics, transportation, and aerospace and defense markets.

Ritu Favre will lead the Test & Measurement segment as Business Group President. Favre joined NI in 2019 as Senior Vice President and General Manager of the semiconductor business. Later, she became Executive Vice President of Business Units in 2022. She handled driving growth across the semiconductor and electronics; aerospace, defense and government; transportation; and portfolio business units.

Favre brings more than 30 years of technology experience to Emerson, with deep customer relationships and expertise on emerging innovations and technologies driving electronic test and measurement forward.

“I am excited to lead Emerson’s newly formed Test & Measurement business group and build on NI’s strong foundation as we drive synergies, and continue to enhance growth and profitability,” said Favre.