National Instruments – NI Active Components

National Instruments Corporation provides software-connected automated test and measurement systems. The Company offers application software and modular hardware, data acquisition and control, software suites, electronic test and instrumentation, wireless design and test, application specific system, and accessories.

In 2020, National Instruments, now known as NI, underwent a rebranding and solidified its position as one of the largest tech employers in the Austin area and one of its oldest publicly traded companies. Established in 1976, NI boasts a global workforce of over 7,000 employees, with approximately 2,700 based in Austin. The company reported $1.66 billion in revenue last year and operates in more than 40 countries, serving around 35,000 customers across various industries such as semiconductor, electronics, transportation, aerospace, and defense.

NI has a rich history of specializing in testing and measurement hardware, along with software systems utilized in diverse industries. The decision to sell came after several years of NI executives focusing on high-growth markets, including software and related services, electric and autonomous vehicles, wireless communications, and new space technologies. This strategic shift has led to notable growth and improved profitability.

ST. LOUIS (October 11, 2023) – Emerson (NYSE: EMR) has completed its acquisition of NI (Nasdaq: NATI), a leading provider of software-connected automated test and measurement systems, for an equity value of $8.2 billion. This acquisition marks a significant move for Emerson, strengthening its position as a global leader in automation and opening up new opportunities in nearshoring, digital transformation, sustainability, and decarbonization trends. NI's portfolio of software, control, and intelligent devices is expected to accelerate Emerson's revenue growth in line with its 4-7% organic growth target. The acquisition also expands Emerson's presence in discrete markets, becoming its second-largest industry segment. With approximately 20% of sales in software, NI enhances Emerson's foothold in high-growth industrial software markets.

Under Emerson's structure, NI will become a new segment called Test & Measurement, consolidated into the Software and Control group. The Test & Measurement business will remain headquartered in Austin, Texas, operating in over 40 countries and serving approximately 35,000 customers in high-growth semiconductor, electronics, transportation, aerospace, and defense sectors. The acquisition is expected to increase Emerson's gross profit, with further opportunities for adjusted EBITA margin expansion as it aims to realize $165 million in cost synergies by the end of the fifth year through the application of best practices from the Emerson Management System.