Emerson Electric, which makes industrial equipment, will buy IT products and infrastructure company Avocent Corp. for $1.2 billion cash. The Wall Street Journal has more:
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.