(Reuters) -Emerson Electric offered on Tuesday to buy the remainder of AspenTech that it does not own at a valuation of $15.1 billion, focusing on industrial automation.

In 2021, the company merged its software units with smaller rival Aspen Technology to own approximately 55% of the combined entity.

Emerson offered $240 per share in cash for the remainder of the industrial software technology provider. The company will pay about $6.53 billion for the stake, according to a Reuters calculation.

AspenTech shares rose about 5% to $249.80 in premarket trading Tuesday. Emerson’s stock rose about 4.9% after the company announced a new buyback program and provided largely optimistic earnings guidance for fiscal 2025.

Emerson, founded a century ago, has streamlined its portfolio in recent years to reposition itself as a technology-focused company. It has benefited as companies have upgraded their factories to include more automation.

The company has also begun exploring options, including a cash sale, for its Safety and Productivity unit, which includes businesses unrelated to its automation portfolio. The segment contributed $1.4 billion in sales in fiscal 2024.

Emerson will not proceed with the transaction unless a special committee composed of directors appointed by AspenTech and advised by independent legal and financial advisors recommends it.

The transaction is not subject to any financing conditions, the company said.

Emerson will repurchase approximately $2.0 billion of its common stock in fiscal 2025, with approximately $1.0 billion expected to be finalized in the first quarter.

Separately, the company said it expects its 2025 earnings per share to be between $5.85 and $6.05, the midpoint of which is above analysts’ average estimate of $5. $89, according to data compiled by LSEG.

(Reporting by Nathan Gomes in Bangalore; editing by Krishna Chandra Eluri and Sriraj Kalluvila)