Emerson to pick up Avocent
- 13 October, 2009 17:12
IT infrastructure provider Avocent Corporation is set to be snapped up by Emerson Electric in a deal worth around US$1.2 billion, or $25 a share.
The acquisition will allow Emerson to integrate Avocent’s infrastructure solutions with its data centre business.
"Combining Avocent's technologies, relationships and installed base with Emerson's power and cooling presence allows us to offer a more compelling solution to our data center customers' most pressing challenge - energy efficiency," Emerson chairman, CEO and president David Farr, said in a release.
"It furthers our customers' ability to better manage reliability, availability and lifecycle costs through a simple yet comprehensive view of the complete data center physical infrastructure."
According to Avocent, sales by the company were worth US$657 million during fiscal 2008, with almost half of that coming from outside of the US.
Emerson’s data centre related sectors brought in revenue totaling around US$2.6 billion in the same period.
Assuming the deal passes the required regulatory tests, it should be closed on or around January, 1 2010.