October 6, 2009 / 11:50 AM / 9 years ago

UPDATE 1-Emerson to buy Avocent for $1.2 bln

* To pay $25 for each share of Avocent, a 22 pct premium

* Deal to close around Jan 2010

Oct 6 (Reuters) - Industrial conglomerate Emerson Electric Co (EMR.N) agreed to acquire network equipment technology provider Avocent Corp AVCT.O for about $1.2 billion to boost its product offerings, the companies said on Tuesday.

Emerson said it will pay $25 for each share of Avocent, a premium of 22 percent to the stock’s Monday closing price of $20.52.

Shares of Emerson were up 2 cents, while those of Avocent jumped $4.28 to $24.80 in trading before the bell.

Avocent board unanimously endorsed the terms of the deal, which is expected to close around Jan. 1, 2010, the companies said.

The transaction will boost Emerson’s ability to deliver total infrastructure management solutions to its data center customers around the world, the companies said.

The deal comes close on the heels of copier company Xerox Corp’s (XRX.N) offer to buy data center management firm Affiliated Computer Services Inc (ACS.N) for $6.4 billion.

Huntsville, Alabama-based Avocent, whose customers include Yahoo YHOO.O and Brocade Communications Systems BRCD.O, recorded sales of $657 million in 2008. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Deepak Kannan)

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