Earlier today, Emerson Electric Co. (EMR) announced that it has reached an agreement to acquire network equipment technology provider Avocent Corp. (AVCT) for $1.2 billion in cash. Emerson will pay $25 per share for Avocent, which is a 22% premium to Monday’s closing price.

Emerson believes this acquisition will further its ability to deliver total infrastructure management solutions to its data center customers around the world. Avocent has global manufacturing, research and development and sales operations and almost half of its 2008 sales came from outside the U.S.

Emerson generated $2.6 billion in sales (approximately 11% of total revenue) in 2008 from its data center-related operations. The transaction, which is expected to close around Jan 1, 2010, will further expand Emerson’s product offering to data center managers and create significant growth opportunities.

Emerson combines industry knowledge, manufacturing expertise, and technological innovation to offer a broad portfolio of products and services to its customers across a broad range of industries. Despite the economic downturn the company is investing in new technologies and expansion of its global footprint.

Alabama-based Avocent, delivers IT operations management solutions that reduce operating costs, simplify management and increase the availability of critical IT environments 24/7 via integrated, centralized software. The company’s customers include Yahoo (YHOO) and Brocade Communications Systems (BRCD).

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