Company also put in place measures to prevent a hostile takeover
NI said Friday that it has been approached by potential buyers and that its board of directors has begun a review of its strategic options.
“The comprehensive review will include consideration of a full range of available strategic, business and financial alternatives, including solicitation of interest from potential acquirors and other transaction partners, some of whom have already approached the Company,” NI said in a statement.
In the meantime, the test equipment company headquartered in Austin, Texas has also put into place a “shareholder rights” plan that the company says that the measure is meant 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.” That plan, the company added, is “also intended to reduce the likelihood that any person or group gains control of the Company through open market accumulation or other tactics and reduce the likelihood that actions are taken by third parties that are not in the best interests of the Company and all of its shareholders.”—essentially, to prevent a hostile takeover. That rights plan expires on January 12, 2024.
“Over the last five years, we have been executing an exciting strategic transformation, increasing our focus on complete solutions for high-growth vertical markets,” said Michael McGrath, chairman of the Board of NI, in a statement. “We have organized around industry business units, with a sales organization that focuses on these industries, and are selling complete solutions for much larger sales. We have seen considerable success with this new strategic direction, resulting in a significant increase in bookings over the last two years. In 2023, we are taking the next step in this transformation, with significant improvements in operating efficiencies. … We expect significant shareholder benefits from these initiatives in 2023 and beyond. Notwithstanding our confidence in NI’s prospects, we believe initiating a strategic review to explore options to maximize value for our shareholders is the right path forward at this time.”
Eric Starkloff, NI’s CEO, said that the company’s implementation of strategic initiatives over the past few years and its focus on software and services has “transformed NI into a company with higher growth, better profitability and lower cyclicality. These changes have enabled deliberate focus on high-growth sub-segments, including electric and autonomous vehicles, wireless communications and new space technology.”
NI’s stock was up nearly 17% in midday trading Monday.
The company will announce its most recent results for the fourth quarter and full-year of 2022 on January 31.
