National Instruments Corp. rose as much as 19% after announcing that it was exploring strategic options including a sale.
(Bloomberg) — National Instruments Corp. rose as much as 19% after announcing that it was exploring strategic options including a sale.
The company, which does business as NI, has retained advisers to review a range of alternatives, “including solicitation of interest from potential acquirers and other transaction partners, some of whom have already approached the company,” according to a statement Friday.
NI also said it would adopt a limited-duration shareholder rights plan, which will expire in about one year. Shareholder rights-plans, also known as poison pills, are a defensive tactic for keeping a potential acquirer or activist investor at bay by preventing them from accumulating a large stake.
NI said it was adopting one to “help ensure that all interested parties have the opportunity to participate fairly in the strategic review and to provide the board and shareholders time to make informed decisions.”
NI’s shares were up 17% to $46.85 at 1:08 p.m. in New York trading, giving the Austin-based company a market value of about $6.1 billion.
NI, which provides testing and measurement equipment and software, has been expanding its portfolio in recent years via acquisitions into electric vehicles, batteries and driver-assistance systems.
“Over the last five years, we have been executing an exciting strategic transformation, increasing our focus on complete solutions for high-growth vertical markets,” NI Chairman Michael McGrath said in the statement.
Bank of America Corp. and Wachtell Lipton Rosen & Katz are advising NI on the review.
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