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Emerson said it will acquire all outstanding shares of common stock of Aspen Technology not already owned by it for $265 per share in cash, valuing the minority stake at $7.2 billion. Meanwhile, Elliott said it has invested more than $1.5 billion in Aspen.
Activist investor Elliott Investment Management said on Friday it doesn’t agree with the price offered by Emerson Electric to acquire Aspen Technology, Inc. and considers it highly opportunistic.
In late January, Emerson said it would acquire all outstanding shares of Aspen's common stock not already owned by it for $265 per share in cash, valuing the minority stake at $7.2 billion.
Emerson will make a tender offer to acquire the shares of Aspen common stock. This will be followed by a merger in which all of the outstanding shares of Aspen Tech common stock not tendered will be converted into the right to receive $265 per share of common stock in cash.
Emerson currently owns approximately 57% of Aspen Tech's outstanding shares of common stock following its 55% majority investment completed in 2022.
Funds owned by Elliott have an investment of more than $1.5 billion in Aspen Technology.
"As the largest minority investor in AspenTech, we disagree with the company's decision to support a $265 per share tender offer by its majority stockholder, Emerson, to acquire the AspenTech shares it does not already own. Emerson's offer is highly opportunistic and substantially undervalues the company. Elliott has no intention of tendering its shares at the current price,” Elliott said.
Following Elliott’s disclosure, AZPN shares traded nearly 4% higher on Friday morning to hit a record high of about $277—$12 higher than the proposed tender price.
Emerson stated earlier that the transaction is expected to close in the first half of 2025, and the company expects to finance it using cash-on-hand and debt financing.
Upon closing the deal, Aspen Tech will become a wholly owned subsidiary of Emerson, and the former’s common stock will cease to trade on the Nasdaq. The transaction values the total company at a fully diluted market capitalization of $17 billion with an enterprise value of $16.8 billion.
On Stocktwits, retail sentiment surrounding AZPN continued to trend in the ‘neutral’ territory (50/100).
AZPN shares have gained over 10% in 2025 and have risen over 43% in the past year.
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