(Reuters) - Emerson (NYSE: EMR ) Electric agreed to buy the remaining shares in AspenTech that it does not already own in a deal that values the stake at $7.2 billion, the companies said on Monday.

The deal allows Emerson, which currently owns about 57% stake in AspenTech, to strengthen its focus in the industrial automation segment.

Emerson has offered to buy the remaining stake at $265 per share in an all-cash tender offer, valuing AspenTech at $16.8 billion.

The per share figure is at a premium of 10.4% from its prior offer of $240 per share made in November.

Following the closing of the deal, expected in the first half of 2025, Aspen would operate as a wholly owned unit of Emerson.

Emerson will look to finance the stake purchase with its existing cash on hand and debt financing.

Goldman Sachs and Centerview Partners are financial advisors to Emerson, while Qatalyst Partners and Citi are serving as independent financial advisors to AspenTech.

Emerson took control of 55% of Aspen in 2022 after merging its software units with the smaller rival.

Emerson, founded a century ago, has streamlined its portfolio over the past few years to focus on technology as companies modernize their factory floors to include more automation.

Aspen's shares were up 3% at $262.9 in premarket trade. (This story has been corrected to say that Emerson took control of 55% of Aspen in 2022, not in 2021, in paragraph 8)