UPDATE 1-NI to explore options including sale, amid interest from Emerson Electric - sources
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By Anirban Sen and Priyamvada C
Jan 13 (Reuters) - NI Corp, a provider of testing and measuring equipment, said on Friday it was exploring strategic options after acquisition interest from companies that people familiar with the matter said include Emerson Electric Co .
NI shares surged to a near four-year high after the announcement of the review, which the company said would include "a full range of available strategic, business and financial alternatives, including solicitation of interest from potential acquirers and other transaction partners, some of whom have already approached the company."
Shares of the company, which also makes software, closed up nearly 17% at $46.97 apiece on Friday, giving it a market capitalization of over $6 billion.
The acquisition interest from potential suitors, according to the sources, forced NI to adopt a so-called poison pill, which would be triggered if a person or a group's ownership of the firm reaches 10%. The limit is 20% in case of passive institutional investors.
The sources, who requested anonymity as the discussions are confidential, cautioned that the talks with suitors including Emerson are subject to market conditions, and a deal is not guaranteed.
Texas-based NI, formerly known as National Instruments, specializes in making automated testing and measurement tools to aid in research and validation of new technologies. It serves the semiconductor, transportation, aerospace and defense industries.
Large industrial businesses are accelerating their efforts to automate operations amid a shortage of factory workers, and Emerson has doubled down on its software strategy to capture that shift.
In October, Emerson sold a majority stake in its climate technologies unit to Blackstone Inc in a deal that valued the business at $14 billion.
At the time, Emerson said it would use the proceeds from the deal for “strategic M&A to strengthen and diversify its automation portfolio in four targeted adjacent markets."
Last year, Emerson also sold its division that makes waste disposal equipment and hot water dispensers to Whirlpool Corp and merged its software units with smaller rival Aspen Technology.
Emerson Electric did not immediately respond to a request for comment.
BofA Securities and Wachtell, Lipton, Rosen & Katz are advising NI. (Reporting by Anirban Sen in New York; Additional reporting by Priyamvada C in Bengaluru; Editing by Krishna Chandra Eluri and Cynthia Osterman)
