Emerson Electric To Buy Avocent For $1.2 Billion |
| Wall Street Journal - Oct 6, 2009 |
Diversified industrial equipment maker Emerson Electric Co. (EMR) will acquire information-technology company Avocent Corp. (AVCT) for about $1.2 billion in cash, broadening the software capabilities of Emerson's data center management and equipment business.
Emerson plans to apply Avocent's software management technology to its network power systems segment, a business that generated $6.3 billion in revenue in 2008. Energy management services and equipment for computer data centers accounted for $2.6 billion of that revenue. Emerson considers the data center market ripe for expansion and estimates the addition of Avocent will give Emerson the opportunity to pursue more than $1 billion in new data center revenue.
"We cover the data center room. We have equipment throughout the room. The game for us is to expand that market," Chairman and Chief Executive David Farr said during a conference call with Wall Street analysts on Tuesday. "We're going to expand the capabilities we have today in those data centers."
Read Full Article from Wall Street Journal
- Posted: 2009-10-06 13:15:32
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