St. Louis, Missouri-based Emerson Electric announced Oct. 11 that it has closed its acquisition of National Instruments, a leading provider of software-connected automated test and measurement systems, at an equity value of $8.2 billion.

The agreement was first announced in April, when the two companies agreed to a deal that would allow Emerson to purchase NI for roughly $60 per share in cash.

NI’s portfolio is expected to accelerate Emerson’s revenue growth aligned to its 4-7% through the cycle organic growth target.

“NI increases Emerson’s end market exposure in discrete markets, which will be Emerson’s second largest industry segment, and with approximately 20% of sales in software, NI also increases Emerson’s exposure to high-growth industrial software markets,” Emerson said in a news release.

Emerson said the acquisition increases its gross profit, with further adjusted EBITA margin expansion opportunities as Emerson delivers an expected $165 million of “cost synergy opportunities by the end of year 5 through application of best practices from the Emerson Management System.”

“Our acquisition of NI is a significant milestone in our efforts to transform Emerson and realize our vision of increasing growth, cohesiveness and end market diversification across Emerson’s portfolio,” said Emerson President and CEO Lal Karsanbhai. “We are pleased to welcome NI employees to Emerson and benefit from our shared visions and cultures, including our mutual commitment to innovation, operational excellence and sustainability. Together, we look forward to providing our customers more innovative and differentiated products, executing on our synergy targets and delivering increased shareholder value.”

NI will become a new reported segment within Emerson called Test & Measurement and will be consolidated into the Software and Control group. The Test & Measurement business will continue to be headquartered in Austin, Texas. NI reported $1.66 billion in 2022 revenue and operates in more than 40 countries, serving approximately 35,000 customers across high-growth semiconductor and electronics, transportation and aerospace and defense markets.

In January, Emerson announced that it has made a $7.6 billion bid for Austin, Texas-based National Instruments, in what some news outlets framed as a hostile takeover attempt. At the time, Emerson said that NI had avoided serious buyout negotiations since early 2022.