Independent investment firm, Franchise Partners, has expressed disappointment over the decision made by the Board of Directors of Aspen Technology, Inc. (AspenTech) to support a cash tender offer from Emerson.
On Thursday 13 February, 2025, Franchise Partners, acting on behalf of its clients, announced that it owns 489,000 shares in AspenTech, representing 0.7% of the company’s issued share capital. As a top 20 shareholder in AspenTech, Franchise Partners has been a supportive owner of the business since 2023.
However, Franchise Partners is disappointed with the Board’s decision to accept Emerson’s offer of $265 per share, which represents a meager 12% premium to the average share price over the 60 days prior to the deal announcement. In a statement, Franchise Partners stated that the offer is “opportunistic” and “derisory.” They also believe that it significantly undervalues AspenTech and fails to recognize the company’s scarcity value and attractive revenue and free cash flow growth prospects.
As a result, Franchise Partners has declared that it has no intention of tendering its shares at the current price.
Established in 2009, Independent Franchise Partners, LLP offers the Franchise investment approach to institutional investors through a dedicated investment management partnership. The Franchise strategy focuses on a concentrated portfolio of high-quality businesses trading at attractive valuations and follows a buy and hold approach to security selection.
For media inquiries, please contact Independent Franchise Partners, LLP at +44 207 495 9070 or via email at contact@franchisepartners.com.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.