Oct. 6 (Bloomberg) — Emerson Electric Co., the maker of power and cooling systems for data centers, agreed to buy Avocent Corp. for about $1.2 billion to add devices used to monitor computer networks.
The acquisition at $25 a share is expected to be completed by Jan. 1, the companies said today in a statement. The offer values Huntsville, Alabama-based Avocent at 22 percent higher than the shares’ closing price yesterday.
Emerson Chief Executive Officer David Farr is adding data- center products to help bolster profit, which has declined in the first three quarters of fiscal 2009. Emerson had $2.6 billion in data center-related revenue last fiscal year, or about 10 percent of the St. Louis-based company’s total sales. Avocent posted about $657 million in revenue in 2008.
I wonder if this might further Emerson in the data center and systems operation space, creating new opportunities and possibly products/solutions, we’ll have to see, I’m off to read up more.
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