- Emerson has announced the completion of its $8.2 billion acquisition of NI (formerly National Instruments).
- NI will become part of Emerson’s newly created Test & Measurement business segment.
- Ritu Favre will head up this business segment, which will be headquartered in Austin, Texas.
- Following the closing of the transaction, NI common stock ceased trading on the Nasdaq.
Texas-based NI brings its American compatriot Emerson a range of modular instruments and software dedicated to the automation of electronic test and measurement processes. Emerson, a specialist in automation and process control solutions, believes that this complementary product offering will enable it to accelerate its sales growth, which is targeted at between 4 and 7%. NI generates 20% of its sales in the software market, which is experiencing strong demand in industry. This will increase Emerson’s exposure to industrial software markets. Through this acquisition, Emerson also expects to reduce costs by $165 million through industrial management synergies by the end of the fifth year.
NI will integrate a new, tailor-made business segment within the Emerson Group. Named “Test & Measurement”, this segment will be consolidated within the “Software and Control” group. The Test & Measurement business will be headquartered in Austin, Texas, where National Instruments was founded and has grown since 1976.
Ritu Favre has been appointed head of the Test & Measurement segment. She joined NI in 2019 as senior vice president and general manager of the semiconductor business, then was promoted in 2022 to executive vice president of business lines. She was responsible for driving NI’s sales growth in the semiconductor, electronics, aerospace, defense, transportation…
National Instruments was founded in Austin in 1976. Renamed NI in 2020, the Texas-based company designs and markets modular instruments (including the PXI format, invented by the company) for electronic testing, as well as test software. Its flagship product is Labview, a graphical application development software. It has sales of $1.66 billion in 2022. With around 7,000 employees worldwide, it is present in over 40 countries, serving some 35,000 customers.
Emerson is an American group offering hardware and software solutions for industrial process control and automation. With almost 90,000 employees worldwide, it has forecast sales of $20 billion for 2022.