View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 7, 2009

Emerson to acquire Avocent for $1.2 billion

Expects to strengthen its data centre management capabilities

By CBR Staff Writer

US engineering company Emerson Electric said that it has agreed to acquire network equipment technology provider Avocent, in a transaction that will strengthen its ability to deliver total infrastructure management to its data centre customers around the world.

The Avocent Board has unanimously endorsed the terms of an all-cash tender offer of $25 per share, or approximately $1.2 billion. The purchase is expected to close around in January 2010, pending customary regulatory approvals and acceptance of the offer by Avocent stockholders holding a majority of Avocent shares.

David Farr, chairman, CEO and president of Emerson, said: “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 centre customers’ most pressing challenge – energy efficiency.

“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.”

Avocent’s unified platform blends hardware, software and embedded technologies for monitoring, managing and problem solving in data centres. Its IT infrastructure management technology manages IT device operating and performance information.In 2008, Avocent recorded sales of $657m. With global manufacturing, research and development and sales operations, nearly 50% of its 2008 revenues came from outside the US.

The companies said that the Avocent’s configuration and monitoring technologies complement Emerson Network Power’s power systems, energy management and precision cooling solutions. Emerson’s data centre-related revenues were approximately $2.6 billion in fiscal 2008.

Mike Borman, CEO of Avocent, said: “Augmenting Avocent’s ability to access and control the physical aspects of network devices and servers with information and knowledge of the broader power and cooling infrastructure forms a powerful combination missing today from the toolset available to data centre managers.”

Content from our partners
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business
When it comes to AI, remember not every problem is a nail

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU