NATIONAL INSTRUMENTS CORPORATION acquired by EMERSON
Context
In October 2023, Emerson completed the acquisition of National Instruments (NI), marking a significant strategic milestone in the industrial automation and test and measurement technologies sector. This acquisition aligns with Emerson's strategy to bolster its global position in industrial software and connected solutions. NI has been integrated as a new reporting segment, dubbed "Test & Measurement," within Emerson's Software and Control division, substantially expanding the company's exposure to the semiconductor, electronics, aerospace, and transportation markets while increasing its share of high-growth industrial software revenue. The transaction is expected to generate substantial operational synergies, estimated at approximately $165 million over five years, by leveraging best-in-class industry practices and integrating the technological platforms of both companies. This move is set to accelerate Emerson's organic growth, in line with its 4-7% cycle target, while enhancing margins and revenue diversification. With this acquisition, Emerson reinforces its goal of becoming a global leader in integrated automation, combining software, control, and advanced instrumentation to support industrial customers in their productivity, sustainability, and digitalization endeavors.
NATIONAL INSTRUMENTS CORPORATION, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level LOGIN than the average currently observed in the Industry & Manufacturing sector (11.6x).
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Target
National Instruments (NI) is a global leader in software-connected automated test and measurement systems. Headquartered in Austin, Texas, the company designs comprehensive solutions that integrate hardware, software, and analysis platforms, enabling engineers to test, validate, and optimize complex electronic products and systems throughout their development lifecycle. NI's portfolio includes modular test platforms, data acquisition systems, controllers, measurement instruments, and development and automation software such as LabVIEW. These solutions allow for the simulation, testing, and analysis of systems in critical environments with high precision and flexibility. With a global customer base of over 35,000 clients, NI serves a wide range of technology-intensive industries, including semiconductors, aerospace, defense, automotive, telecommunications, and electronics. As a key provider of intelligent test solutions, NI combines advanced instrumentation and software to accelerate industrial innovation and improve the reliability of complex products.
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Historical Financials (USD)
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REFERENCES
Valuation range: EV 3b - 100b USD
Revenue range: 1b - 3b USD
EBITDA range: 250M - 500M USD
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: national instruments corporation
Acquirer: emerson