KEYS - Who Will Win the Bidding War for National Instruments?
2023-03-10 05:53:00 ET
The bidding war for National Instruments , or NI (NASDAQ: NATI) , is heating up, according to Reuters . Not only is Emerson Electric (NYSE: EMR) still firmly in the frame, but NI's rival Keysight (NYSE: KEYS) and industry peer Fortive (NYSE: FTV) are also believed to be part of the process. What's going on, and what does it mean for the investment proposition for these stocks? Here's the lowdown.
In a nutshell, NI operates in some desirable industrial end markets, but its margins lag behind its peers. As such, an acquirer could add value by improving NI's operational performance while gaining exposure to growth markets.
NI operates in the software-connected automated test and measurement systems market. Its solutions help industrial customers accelerate the time to market of their products while meeting ever more stringent regulatory requirements. Key end markets include semiconductors (for use in 5G and Wi-Fi in particular), advanced diver assistance systems (ADAS), electric vehicles (EVs), and cognitive systems in aerospace and defense.
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Who Will Win the Bidding War for National Instruments?