Global technology and engineering company Emerson has announced the successful closing of the combination of its industrial software businesses – OSI and its Geological Simulation Software business – with AspenTech, a global leader in industrial software, to create a new industrial software leader - New AspenTech. 

 

With this move, Emerson now owns 55% in the new entity on a fully diluted basis and AspenTech shareholders own the remaining 45%. Shares of the New AspenTech began trading on Nasdaq under the ticker symbol AZPN (previously AspenTech’s ticker symbol).

 

On the closing of the transaction, Emerson President and CEO Lal Karsanbhai said: "I am excited to announce the close of our transaction with AspenTech, which accelerates Emerson’s software strategy and creates an enhanced, high-performance, leading industrial software company with immediate scale and relevancy in a fast-paced, evolving market."

 

"Today marks a significant milestone for Emerson and is a testament to our commitment to continue building a higher growth, more diversified portfolio. Together with new AspenTech, we expect to realize significant revenue and cost synergies, while having the platform and flexibility to strategically deploy capital for growth through continued investment and M&A," stated Karsanbhai. 

 

Antonio Pietri, the President and CEO of new AspenTech, said the company has now begun a new era at AspenTech, expanding its global leadership in industrial software by providing capabilities that support the entire lifecycle of complex operations across a wide range of industry verticals.

 

"With a comprehensive software portfolio, an expanded global sales channel and an even stronger balance sheet reinforced by Emerson, new AspenTech will be uniquely positioned to help our customers address the dual challenge of meeting the increasing global demand for resources in a sustainable manner," noted Pietri. 

 

"As we move forward, I am confident that new AspenTech is poised for significant growth and continued success as we deliver value for our customers, employees and shareholders," he added.

 

Goldman Sachs & Company and Centerview Partners served as financial advisors to Emerson and Davis Polk & Wardwell as their legal counsel, while for AspenTech, JP Morgan Securities was the financial advisor and Skadden, Arps, Slate, Meagher & Flom the legal counsel.-TradeArabia News Service