Emerson and Florida-based Artesyn Technologies have announced that Artesyn will become part of Emerson Network Power. Emerson will acquire Artesyn for $11 a share in cash (approximately $500 million net of acquired cash) pending customary regulatory approvals and approval by Artesyn shareholders.
According to data provided by Micro-tech Consultants, Emerson was the top ranked power supply merchant in the world in 2004 with sales of $2.14 billion in the category encompassing original equipment manufacturer (OEM) power supplies, telecom power (equipment plus services), and UPSs. Furthermore, with UPS sales excluded, both Emerson and Artesyn were among the top 10 merchant power supply manufacturers. In this category of OEM plus telecom power, Emerson was ranked number two with sales of $1.37 billion in 2004, while Artesyn was the seventh-ranked vendor with sales of $355 million that same year.
The agreement brings additional embedded power conversion technologies to Emerson Network Power’s existing portfolio of solutions for the enterprise computing, data, and telecommunications industries. Artesyn provides OEMs with advanced power conversion equipment as well as hardware and software subsystems for a range of communication applications.
Artesyn Technologies, headquartered in Boca Raton, Florida, with sales in 2005 of approximately $420 million, operates globally with design, manufacturing, sales, and service facilities throughout Asia, Europe, and North America. Emerson Network Power, an Emerson business, serves the needs of telecommunications networks, data centers, health care and industrial facilities worldwide with a full spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling. Sales in fiscal 2005 were $3.3 billion.