(Reuters) -Manufacturing giant Emerson Electric Co plans to merge two of its software businesses with Aspen Technology Inc in a roughly $11 billion deal, the Wall Street Journal reported on Monday, citing officials from the companies.
The cash-and-stock transaction would value AspenTech at about $160 per share, according to the report, implying a premium of about 27% to its Oct. 6 close, before Bloomberg News first reported talks between the two companies.
The offer would be at a premium of about 13% to AspenTech’s last close on Friday.
AspenTech shareholders would receive $87 and 0.42 share of the combined company for each share they currently own, the Journal said, adding that the deal is expected to be announced later on Monday.
Bedford, Massachusetts-based Aspen has more than 2,300 customers globally, its website showed, and makes software for companies in the mining, chemicals, pharmaceutical and other sectors. Emerson has a suite of products ranging from automation software to air conditioning tools.
Emerson would own 55% of the combined company, while AspenTech shareholders would own the rest, according to the Journal.
The new company will retain AspenTech’s name and would be led by its current chief executive officer, Antonio Pietri, the report added.
AspenTech and Emerson did not immediately respond to Reuters requests for comment.
(Reporting by Mrinmay Dey and Shubham Kalia in Bengaluru; Editing by Ramakrishnan M.)
