Emerson Electric Is Driving National Instruments Stock Higher: What's Going On?

National Instruments Corp NATI shares are trading higher Wednesday after Emerson Electric Co EMR agreed to acquire the company for $60 per share. 

What To Know: Emerson said it entered into a definitive agreement to acquire National Instruments at an equity value of $8.2 billion. Given that Emerson already owns about 2% of outstanding shares, its effective purchase price is $59.61 per share. 

"We are pleased to reach an agreement with NI, whose best-in-class test and measurement product and software offerings accelerate Emerson's progress toward a cohesive, higher growth and higher margin automation portfolio," said Lal Karsanbhai, president and CEO of Emerson. 

The company said the acquisition will help accelerate growth and drive significant shareholder value. It's also expected to enhance its automation capabilities and widen its customer base. 

"These capabilities provide Emerson industry diversification into attractive and growing discrete markets like semiconductor and electronics, transportation and electric vehicles, and aerospace and defense that are poised to benefit from secular growth trends," Karsanbhai added.

The transaction is expected to close in the first half of Emerson's fiscal 2024.

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NATI Price Action: National Instruments shares were up 8.41% at $57 at the time of writing, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.