ST. LOUIS — Emerson announced on Thursday it was buying the international software company Open Systems International Inc. for $1.6 billion in cash.
Minneapolis-based OSI employs about 1,000 supplying automation solutions to the electric, oil and gas, transport and water industries worldwide.
Emerson said the purchase will "broaden and complement" its portfolio in the digitization and automation of the power industry, work Emerson said is critical to improving the reliability of the electric grid, especially as renewable energy is incorporated.
“An enormous change is underway as utilities globally are investing to digitize the grid and adapt to rapidly evolving energy sources and new technologies that increase consumer choices,” said Lal Karsanbhai, executive president of Emerson’s Automation Solutions business. “This acquisition will help the power industry maximize the remarkable opportunity to harness renewable energy sources and to accelerate the transformation to the smart power grid.
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"Emerson now has the opportunity to be a leader in this large, rapidly growing market with a compelling and complete software and technology offering,” he said.
The companies expect the purchase to close early next year.
Centerview Partners LLC served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to Emerson. Wells Fargo & Co. and Lazard served as financial advisors and Fredrikson & Byron, PA served as legal advisor to OSI Inc.