By Matt Grossman
Emerson Electric Co. reaffirmed its full-year sales and earnings guidance Monday, a day after the company said it planned to merge two industrial-software businesses with Aspen Technology Inc.
Emerson Electric Co. said it expects its full-year adjusted earnings to be $4.06 a share to $4.08 a share, on underlying sales growth of 5% to 6%.
In the planned merger valued at roughly $11 billion, Emerson's OSI Inc. and its Geological Simulation Software businesses would be merged with AspenTech to create a company in which Emerson would own a 55% stake. Emerson will also contribute $6 billion in cash to the company.
The merged AspenTech company would have revenue of roughly $1.1 billion in fiscal 2022, with adjusted earnings before interest, taxes, depreciation and amortization of about $490 million, Emerson and AspenTech said. The post-merger AspenTech would trade on the Nasdaq, retaining ticker symbol AZPN.
The deal is expected to close in the second quarter of next year.
Write to Matt Grossman at matt.grossman@wsj.com
Corrections & Amplifications
This was corrected at 7:56 a.m. ET because the original version incorrectly said Aspen Technology Inc. expects full-year adjusted earnings of $4.06 a share to $4.08 a share and underlying sales growth of 5% to 6%. Emerson Electric Co. said this.
(END) Dow Jones Newswires
10-11-21 0729ET