Emerson Backs 2021 Guidance Amid Merger Plan

By Matt Grossman

Emerson Electric Co. reaffirmed its full-year sales and earnings guidance Monday, a day after the company said it planned to merge two industrial-software businesses with Aspen Technology Inc.

AspenTech said it still expects its full-year adjusted earnings to be $4.06 a share to $4.08 a share, on underlying sales growth of 5% to 6%.

In the planned merger valued at roughly $11 billion, Emerson's OSI Inc. and its Geological Simulation Software businesses would be merged with AspenTech to create a company in which Emerson would own a 55% stake. Emerson will also contribute $6 billion in cash to the company.

The merged AspenTech company would have revenue of roughly $1.1 billion in fiscal 2022, with adjusted earnings before interest, taxes, depreciation and amortization of about $490 million, Emerson and AspenTech said. The post-merger AspenTech would trade on the Nasdaq, retaining ticker symbol AZPN.

The deal is expected to close in the second quarter of next year.

Write to Matt Grossman at [e-mail]

(END) Dow Jones Newswires

October 11, 2021 07:29 ET (11:29 GMT)

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