Emerson announced Aug. 27 it will acquire Open Systems International Inc. for $1.6 billion in cash. The transaction is subject to regulatory approvals and customary closing conditions, and is scheduled to close in early fiscal 2021.
OSI provides operations technology (OT) software, and is expected to broaden and complement Emerson’s software and ability to help global power industry users and others digitalize operations, modernize their grids, incorporate renewable energy sources, and improve energy efficiency and reliability. The two companies add that combining Emerson’s domain expertise and leading technology in power generation with OSI’s complementary software and reach in the power transmission and distribution sectors will give users the end-to-end ability to monitor, control and optimize real-time operations across the power enterprise through scalable, software-enabled automation and data management.
“An enormous change is underway as utilities globally are investing to digitize the grid and adapt to rapidly evolving energy sources and new technologies that increase consumer choices,” says Lal Karsanbhai, executive president of Emerson’s Automation Solutions business. “This acquisition will help the power industry maximize the remarkable opportunity to harness renewable energy sources and to accelerate the transformation to the smart power grid. Emerson now has the opportunity to be a leader in this large, rapidly growing market with a compelling and complete software and technology offering.”
OSI’s advanced modular technology lets users tailor solutions for their power grid management needs, and is scalable to other industries. Combining it with Emerson’s Ovation control system for power generation control will give utilities increased visibility into the status of their power systems, enabling optimized energy efficiency from generation through customer delivery, and enabling the broader industry goal of minimizing carbon footprints.
“Emerson and OSI share a commitment to excellent customer service and offering advanced technologies to help customers manage the reliability and resiliency of the electric grid,” adds Bahman Hoveida, president and CEO of OSI Inc. “We're excited to combine our advanced technologies, engineering expertise and unsurpassed customer service, not only to better serve our electric power customers, but to also expand the reach of this critical software into other industries with the Emerson team.”
