Manufacturing AUTOMATION

Emerson acquires National Instruments, strengthens test and measurement portfolio

October 19, 2023
By Manufacturing AUTOMATION

Emerson recently completed its acquisition of National Instruments (NI), a provider of software-connected automated test and measurement systems. The transaction was at an equity value of $8.2 billion.

“Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness and end market diversification across Emerson’s portfolio,” said Emerson president and chief executive officer Lal Karsanbhai. “We are pleased to welcome NI employees to Emerson and benefit from our shared visions and cultures, including our mutual commitment to innovation, operational excellence and sustainability. Together, we look forward to providing our customers more innovative and differentiated products, executing on our synergy targets and delivering increased shareholder value.”

In an Emerson press statement, the company shares that the acquisition advances its position as a global automation leader and expands its opportunity to capitalize on key secular trends like nearshoring, digital transformation, sustainability and decarbonization. NI brings a portfolio of software, control and intelligent devices that are expected to accelerate Emerson’s revenue growth aligned to its four-to-seven percent through the cycle organic growth target. NI reportedly increases Emerson’s end market exposure in discrete markets, which will be its second largest industry segment. With approximately 20 percent of sales in software, NI increases Emerson’s exposure to high-growth industrial software markets. NI also increases the company’s gross profit, with further adjusted EBITA margin expansion opportunities.

NI will become a new reported segment within Emerson called Test & Measurement and will be consolidated into the company’s Software and Control group. The Test & Measurement business will continue to be headquartered in Austin, Texas.


Ritu Favre is to lead the Test & Measurement segment as business group president. Favre joined NI in 2019 as senior vice-president and general manager of the semiconductor business. She was promoted to executive vice-president of business units in 2022, where she was responsible for driving growth across the semiconductor and electronics; aerospace, defence and government; transportation; and portfolio business units. She brings more than 30 years of technology experience to Emerson, with deep customer relationships and expertise on emerging innovations and technologies driving electronic test and measurement forward.

“I am excited to lead Emerson’s newly formed Test & Measurement business group and build on NI’s strong foundation as we drive synergies, continue to enhance growth and profitability, and help to execute on Emerson’s strategy as an automation leader,” said Favre. “With a deep bench of talent, an impressive roster of customers and our strong combined innovation engine, we are well positioned to work closely with Emerson’s broader business to enhance our ability to solve our customers’ toughest test and measurement challenges.”

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