Summary
Emerson Electric Co. (EMR) announced on May 16, 2022, the successful completion of its previously announced merger with Aspen Technology, Inc. (AspenTech). This significant transaction involved Emerson contributing $6.014 billion in cash and specific business units (Open Systems International and the Geological Simulation Software business) to a newly formed entity, New AspenTech. AspenTech's shareholders received a combination of cash and shares in New AspenTech, with Emerson now holding a 55% controlling stake in the combined entity on a fully diluted basis. This strategic move marks a pivotal point for Emerson, as it aims to reshape its portfolio and focus on higher-growth areas. The combined Aspen Technology entity, now officially renamed Aspen Technology, Inc., will continue to be listed on NASDAQ under the ticker symbol AZPN. Investors should note that this transaction significantly alters Emerson's asset base and future revenue streams, with a substantial portion of value now tied to its controlling interest in the newly structured AspenTech.
Key Highlights
- 1Emerson Electric Co. has completed its merger with Aspen Technology, Inc.
- 2Emerson contributed $6.014 billion in cash and specific business units to the transaction.
- 3Aspen Technology shareholders received a mix of cash and shares in the new entity.
- 4Emerson will beneficially own 55% of the outstanding shares of the combined Aspen Technology (on a fully diluted basis).
- 5The newly formed Aspen Technology entity has been renamed Aspen Technology, Inc.
- 6The combined Aspen Technology will trade on NASDAQ under the ticker symbol AZPN.