10:37 AM EST, 01/27/2025 (MT Newswires) -- Emerson Electric ( EMR ) on Monday agreed to acquire the remaining minority stake in Aspen Technology ( AZPN ) that it does not already own and take the industrial software company private in an all-cash deal worth $7.2 billion.

Under the terms of the deal, Emerson will launch a tender offer to acquire all the shares it doesn't currently own for $265 apiece, according to a joint statement by the companies. The offer will be followed by a merger in which any untendered shares will be converted into the right to receive $265 per share in cash.

The transaction values Aspen at a market capitalization of $17 billion with an enterprise value of $16.8 billion. Emerson's stock decreased 1.5% in Monday trading while Aspen gained 3.3%. The automation technology giant currently owns about 57% of Aspen's stock as it acquired a majority position in the company in 2022.

"This transaction marks a key milestone in our portfolio transformation, and we are excited to fully integrate AspenTech into Emerson to advance our vision for software-defined control," Emerson Chief Executive Lal Karsanbhai said in the statement. "We look forward to offering AspenTech shareholders the opportunity to tender their shares at compelling and certain value while welcoming the AspenTech team into Emerson."

Emerson aims to finance the deal, which is expected to be completed in the first half of 2025, with cash on hand and debt financing. Following completion, Aspen will become a wholly owned subsidiary of Emerson and it will no longer trade on the Nasdaq, according to the companies.

In November, Emerson proposed to purchase the remaining stake in Aspen for $240 per share in cash.

"Emerson has been an outstanding partner to AspenTech, and in this next chapter, we look forward to further differentiating our offering as we innovate to serve customers' evolving industrial software needs," Aspen CEO Antonio Pietri said.

For its fiscal first quarter ended Sept. 30, Aspen reported in November adjusted earnings of $0.85 a share, down from $1.16 the year before. Revenue declined to $215.9 million from $249.3 million in the prior-year quarter. At the time, the company said it expected adjusted EPS of about $7.52 on revenue of roughly $1.19 billion in fiscal 2025.

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