Industrial equipment maker Emerson Electric Co. (EMR) will take
over information-technology company Avocent Corp. (AVCT) for about
$1.2 billion in cash, saying the company's software solutions will
help Emerson clients be more energy efficient.
Emerson - a maker of industrial-automation equipment, power
systems and heating and cooling gear - wants to apply the company's
infrastructure management technology to its network of power
systems, energy management and precision cooling services.
"Combining Avocent's technologies, relationships and installed
base with Emerson's power and cooling presence allows us to offer a
more compelling solution to our data center customers' most
pressing challenge - energy efficiency," said Emerson Chairman and
Chief Executive David N. Farr.
Avocent holders will get $25 a share, a 22% premium to Monday's
close. The deal, which was unanimously recommended by the Avocent
board of directors, is expected to be complete around year-end if
it gets approval from regulators and a majority of Avocent
shareholders. The stock was last at $25 in August 2008.
Half of Avocent's sales, which totaled $647 million in 2008,
were made outside the U.S. that year. The company blends hardware,
software and embedded technologies into one system that data-center
operators to monitor, manage and fix problems with their
operations.
Emerson shares closed at $38.68 and didn't trade premarket. The
stock is up 6% so far this year as the company has reported lower
earnings the past three quarters amid falling demand.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com