Emerson Electric Co., St. Louis, will acquire network equipment technology provider Avocent Corp., Huntsville, Ala., for about $1.2 billion in cash in a deal that will further Emerson’s ability to deliver total infrastructure management solutions to its data center customers around the world. Avocent provides hardware and software for managing data centers. About half of its 2008 sales of $657 million were from outside the United States. The company focuses on IT operations management solutions that reduce operating costs, simplify management and increase the availability of critical IT environments 24/7 via integrated, centralized software.
According to an Emerson press release, the acquisition extends the integrated solutions Emerson provides to data center managers and creates significant opportunities for growth because Avocent blends hardware, software and embedded technologies in a unified platform that simplifies monitoring, managing and problem solving in any size data center. The Emerson press statement also said Avocent’s strengths in the IT market complement Emerson Network Power’s power systems, energy management and precision cooling solutions. Emerson’s data center-related revenues were approximately $2.6 billion in fiscal 2008.
“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 center customers’ most pressing challenge — energy efficiency,” said David Farr, Emerson chairman, CEO and president. “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.”
Said Mike Borman, Avocent’s CEO, “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 center managers.”
Emerson Network Power focuses on enabling business-critical continuity from grid to chip for telecommunication networks, data centers, health care and industrial facilities. The company provides solutions and expertise in areas including AC and DC power and precision cooling systems, embedded computing and power, integrated racks and enclosures, power switching and controls, monitoring and connectivity. All solutions are supported globally by local Emerson Network Power service technicians. Liebert power, precision cooling and monitoring products and services from Emerson Network Power improve the utilization and management of datacenter and network technologies by increasing IT system availability, flexibility and efficiency.
Emerson’s sales in fiscal 2008 were $24.8 billion. Emerson’s electrical portfolio includes well-known brands such as Appleton, McGill, OZ/Gedney, Sola/HeviDuty, Nelson and EasyHeat.