Emerson, a global automation technology and engineering company, said it has reached an agreement to acquire Open Systems International (OSI) for $1.6 billion in an all cash transaction.

OSI is a leading operations technology software provider that broadens and complements Emerson’s robust software portfolio and ability to help customers in the global power industry, as well as other end markets, in their quest to transform and digitize operations to more seamlessly incorporate renewable energy sources and improve energy efficiency and reliability.

Digitization is critical for the power industry to modernize and improve the reliability of the electric grid. Incorporating clean and renewable energy sources, such as solar and wind, requires balancing the variable nature of renewable energy with the often-bi-directional demands of the grid.

By combining Emerson’s domain expertise and leading technology in power generation with OSI’s complementary software and reach within the power transmission and distribution sectors, the acquisition will equip customers with the end-to-end ability to monitor, control and optimize real-time operations across the power enterprise through scalable, software-enabled automation and data management.

“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,” remarked Lal Karsanbhai, the Executive President for Emerson (Automation Solutions).

“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,” stated Karsanbhai.

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 added.

OSI’s advanced modular technology offers customers tailored solutions for their power grid management needs and is scalable to other industries.

Combining this technology with Emerson’s Ovation control system, which is a market leader for power generation control, will provide utility customers with increased visibility into the current status of their power system, enabling unparalleled ability to optimize energy efficiency from generation through customer delivery –enabling the broader industry goal of minimizing carbon footprint.

The acquisition will complement Emerson’s existing robust portfolio of software and automation technologies that support the world’s essential industries, it stated.

“Our $1 billion standalone software and associated engineering implementation services portfolio is quickly growing to meet customer needs and support operational performance, analytics and digital transformation,” observed Karsanbhai.

“OSI is a great business with a track record of high growth, strong profitability and long-term customer loyalty. This acquisition builds on Emerson’s software footprint and supports customers in providing comprehensive end-toend solutions to help the power industry continue transforming to meet the needs of tomorrow,” he added.

OSI President & CEO Bahman Hoveida said: “Emerson and OSI share a commitment to excellent customer service and offering advanced technologies to help customers manage the reliability and resiliency of the electric grid.”

“We are excited to combine our advanced technologies, engineering expertise and unsurpassed customer service not only to better serve our electric power customers but also to expand the reach of this critical software into other industries with the Emerson team,” he added.

OSI is headquartered in Minneapolis, MN and has approximately 1,000 employees globally. The acquisition is expected to close in early fiscal 2021.

For Emerson, Centerview Partners was the financial advisor and Davis Polk & Wardwell the legal advisor, while for OSI, the Wells Fargo & Company and Lazard served as financial advisors and Fredrikson & Byron handled legal advisory service.-TradeArabia News Service

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