Shares of Aspen Technology Inc. AZPN, +2.84% rallied 4.7% and Emerson Electric Co. EMR, -0.72% fell 0.9% after the companies announced an agreement in which Emerson’s industrial software business will be contributed to Aspen to create a new AspenTech software company with greater scale, capabilities and technologies. As part of the deal, Emerson will also contribute $6.0 billion in cash in exchange for a 55% stake in the newly formed AspenTech. Under the agreement’s terms, AspenTech shareholders will receive $87 per share in cash and 0.42 shares of the new AspenTech, implying a total consideration of $160 a share, and deal with a total equity value of about $11 billion before expected synergies. That represents a 13.0% premium to Aspen’s Friday’s closing price of $141.55. After the deal closes, which is expected to occur in the second quarter of 2022, the new AspenTech will trade on the Nasdaq under the ticker symbol “AZPN.” Aspen’s stock has gained 8.7% year to date through Friday and Emerson shares have rallied 20.2%, while the S&P 500 has advanced 16.9%.
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