National Instruments picks Fortive, Keysight as challengers to Emerson’s bid -sources

Milana Vinn, David Carnevali and Anirban S.

(Reuters) – Three people familiar with the matter stated that National Instruments Corp, a manufacturer of measurement equipment, has determined that Fortive Corp. and Keysight Technologies Inc. have the potential to surpass Emerson Electric Co.’s $7 billion offer for the company.

Sources said that National Instruments informed Emerson, Fortive, and Keysight, all of which are providers of automation solutions that facilitate manufacturing in different industries, this week, that their offers meet the requirements for the second round of bidding.

National Instruments was put up for sale in January by Emerson, who threatened to challenge the board’s independence if it didn’t engage in negotiations. Emerson ended that threat after National Instruments was sold.

It was impossible to determine the value of the first round bids. It is also unclear whether National Instruments will receive an offer that it considers superior to Emerson’s $53-per share all-cash offer or if Emerson will change its offer. National Instruments closed Thursday trading at $50.62 per share.

According to sources, National Instruments anticipates that the sale process will be complete by April 1.

Sources said that another bidder could still emerge. They requested anonymity because it is confidential. National Instruments Fortive, Keysight and National Instruments did not immediately respond. Emerson declined to comment.

National Instruments, based in Austin, Texas, specializes in automated testing and measuring tools for the semiconductor and aerospace industries.

Emerson has been involved with a number of deals in the past few years to transform itself into an industrial automation provider. Keysight, an instrumentation business, and Fortive, an industrial conglomerate have been actively seeking acquisitions in the test- and measurement sector.

(Reporting by David Carnevali and Milana Vinn in New York. Editing by Deepa Babington.