National Instruments stock (US63361B1026): acquisition by Emerson reshapes test and measurement landscape

National Instruments has been taken over by Emerson, closing a major chapter for the US test and measurement specialist. What the deal means for the brand, the business model and for investors still holding legacy shares.

National Instruments, a long-established US provider of test and measurement systems, has been fully acquired by industrial technology group Emerson in a transaction that values the target at around 8.2 billion USD, including debt, according to an Emerson press release dated 10/11/2023 and subsequent integration updates published in 2024 Emerson as of 10/11/2023. The deal takes National Instruments off the public market, but the brand and product portfolio continue to play a role inside Emerson’s test and measurement and automation portfolio, as highlighted in the buyer’s capital markets materials released in 2024 Emerson as of 02/07/2024.

As of: 17.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: National Instruments Corporation (now part of Emerson)
• Sector/industry: Test and measurement, industrial software, automation
• Headquarters/country: Austin, Texas, United States
• Core markets: Electronics, automotive, aerospace and defense, industrial automation
• Key revenue drivers: Modular measurement hardware, LabVIEW and related software, services and support contracts
• Home exchange/listing venue: Formerly Nasdaq (ticker: NATI)
• Trading currency: Previously USD (for NATI shares)

National Instruments: core business model

National Instruments built its business around modular, software-centric test and measurement systems that allow engineers to automate data acquisition, control and analysis tasks across a wide range of industries. The company’s flagship platform, LabVIEW, is used to design measurement and control applications via a graphical programming environment, reducing development time for complex test systems compared with low-level coding approaches. This combination of proprietary software and flexible hardware created a lock-in effect, as customers invested in both licenses and system integration.

Historically, National Instruments targeted engineering departments in sectors with demanding testing requirements, such as semiconductor manufacturing, communications, automotive electronics and aerospace. In these fields, frequent product cycles and stringent quality standards require automated test setups that can be reconfigured quickly as new components or standards emerge. The company offered modular PXI-based hardware, data acquisition cards and instruments that could be mixed and matched, while LabVIEW provided the software layer to orchestrate measurements, control equipment and process data.

Over time, National Instruments expanded into system-level offerings that combined hardware, software and integration services, often sold as solutions for specific applications like battery testing, hardware-in-the-loop simulation for automotive ECUs or wireless device validation. This moved the business model beyond component sales toward higher-value, solution-based revenue. Recurring revenue from software maintenance, support and calibration services also became more important, improving visibility and smoothing cyclical swings in hardware demand.

The company’s positioning as a platform provider differentiated it from traditional instrument vendors that focused mainly on standalone oscilloscopes or signal analyzers. Instead of selling individual boxes, National Instruments promoted a software-defined approach where a single modular system could replicate many instrument functions, controlled by unified software. This strategy aligned well with the broader trend toward software-defined test and measurement, where flexibility and integration with enterprise software stacks are increasingly valued by customers.

Main revenue and product drivers for National Instruments

National Instruments generated a large portion of its revenue from the combination of modular measurement hardware, embedded controllers and chassis that form the backbone of automated test systems. These hardware components were sold into sectors such as communications infrastructure, automotive electronics and aerospace, where demand is influenced by technology upgrade cycles and regulatory requirements. As new communication standards, power electronics architectures or safety requirements emerged, customers needed updated test capabilities, driving orders for new systems and upgrades.

On the software side, LabVIEW and related tools provided an important stream of license and maintenance revenue. Engineering teams used the environment not only for test automation but also for data analysis and control tasks in research and development settings. License models typically included initial fees and ongoing maintenance contracts, which delivered recurring cash flows and created a base of installed users. Add-on toolkits, drivers and integration options with third-party systems further extended monetization opportunities, as customers deepened their use of the platform.

Services and support formed the third major revenue pillar. National Instruments offered training, consulting, system integration, calibration and repair services aimed at helping customers deploy and maintain complex test setups. In industries like aerospace and defense, where long equipment lifecycles and stringent certification requirements are common, these services can be critical and are often tied to long-term contracts. The company also collaborated with a global network of system integrators and partners, which helped scale deployment of its technology in local markets while still anchoring high-value software and hardware revenue with National Instruments.

Regionally, the United States represented a key market, both because of the concentration of technology, semiconductor and aerospace companies and because of significant federal and defense-related research spending. Europe and Asia, including major electronics hubs and automotive clusters, also contributed meaningfully to revenue. The diversification across regions and industries offered some resilience against sector-specific downturns, although exposure to capital spending cycles in technology and manufacturing remained an inherent feature of the business.

Conclusion

The acquisition of National Instruments by Emerson has removed the stock from public trading, but the underlying business in modular test and measurement and engineering software continues to operate within a larger industrial technology group. For investors who previously held NATI shares, the cash deal and subsequent integration primarily matter as a closed chapter, while the technology itself remains relevant for customers across electronics, automotive and aerospace sectors. In the broader US market context, the transaction illustrates how industrial and automation companies are using acquisitions to strengthen their software and testing capabilities, a trend that may continue as product complexity and regulatory requirements increase.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.