Emerson To Acquire Remaining Aspen Tech Shares In $7.2B Deal: Retail Expresses Enthusiasm

Shares of Emerson (EMR) and Aspen Technology Inc. (AZPN) traded in the green on Monday after Emerson said it will acquire all outstanding shares of common stock of Aspen 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.

The transaction is expected to close in the first half of 2025. Emerson 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.

Following the announcement, Emerson shares traded over 1% lower, while Aspen Tech shares rallied over 3%.

Chair of the Aspen Tech Special Committee Robert Whelan, Jr. expressed confidence that the transaction would be the best path forward for AspenTech and its shareholders.

On Stocktwits, retail sentiment surrounding Emerson flipped into the ‘bullish’ territory (72/100) from ‘bearish’ a week ago. The move was accompanied by ‘extremely high’ message volume. 

EMR’s Sentiment Meter and Message Volume as of 12:59 p.m. ET on Jan. 27, 2025 | Source: Stocktwits

At the same time, retail sentiment surrounding Aspen stock climbed into the ‘extremely bullish’ territory (86/100) from ‘bullish’ a month ago. The move was accompanied by significant retail chatter.

AZPN’s Sentiment Meter and Message Volume as of 1:01 p.m. ET on Jan. 27, 2025 | Source: Stocktwits

Emerson shares have gained over 5% year-to-date and over 35% over the past year. Aspen shares have recorded over 5% gains year-to-date and over 29% over the past year.

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