United States based company specializing on providing engineering and technology services for industrial, commercial and consumer markets Emerson Electric Co. (EMR) is considering to merge its software units with Aspen Technology Inc. (AZPN).
Aspen Technology engages in asset optimization software helping industrial companies run their operations more safely and efficiently. This merger deal is valued at $11 billion.
Some insider sources revealed to Wall Street Journal that the merger deal will be a both cash and stock transaction which will be valuing the stock of AspenTech at $160 per share. This price insinuates a share premium of 27% according the closing price of the stock on October 6.
After the deal has been closed, Emerson Electric will own 55% of the merged company while AspenTech’s shareholders will own the remaining 45%.
The shareholders of AspenTech will receive $87 and 0.42 share of the merged company for each share currently owned. The companies are expected to give updates on the matter as time goes on.
According the report on WSJ, the merged company will retain AspenTech’s name and its current chief executive, Antonio Pietri, will assume the CEO role of the merged company.