Emerson has agreed to acquire Medina, Minnesota-based automation software provider Open Systems International (OSI) in an all cash transaction valued at $1.6bn.

The acquisition is expected to complement Emerson’s software solutions for customers in the global power industry, along with other markets.

The transaction will combine Emerson’s domain expertise and technology in power generation with OSI’s software and footprint in the power transmission and distribution sectors.

Emerson automation solutions business executive president Lal Karsanbhai said: “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.

“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.”

The transaction will complement software and automation technologies of Emerson

By acquiring OSI, Emerson will offer a scalable, software-enabled automation and data management solutions to customers to monitor, control and optimise real-time operations across the power enterprise.

The advanced modular technology of OSI offers customers with customised solutions for their power grid management needs.

When combined with Emerson’s Ovation control system, the solution is expected to provide utility customers with improved visibility into the current status of their power system.

The acquisition is expected to complement Emerson’s portfolio of existing software and automation technologies. The transaction is expected to be completed in early 2021, subject to several regulatory approvals and other customary closing conditions.

OSI president and CEO Bahman Hoveida said: “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.

“We are excited to combine our advanced technologies, engineering expertise and unsurpassed customer service not only to better serve our electric power customers but also to expand the reach of this critical software into other industries with the Emerson team.”