National Instruments announces strategic review, eyeing shareholder value

By Liz Moyer

Investing.com -- National Instruments Corporation (NASDAQ:NATI), which goes by NI, is starting a strategic review aiming to maximize shareholder value, saying in a press release that it would consider soliciting interest from potential suitors and other possible transactions.

Some potential partners have already approached it, NI said.

Shares of Austin, Tex.-based NI jumped 17%.

The maker of testing and measurement equipment has been building its business in electric vehicles, driver-assistance systems, and batteries in recent years. “Over the last five years, we have been executing an exciting strategic transformation, increasing our focus on complete solutions for high-growth vertical markets,” said NI’s Chairman Michael McGrath.

“We have seen considerable success with this new strategic direction, resulting in a significant increase in bookings over the last two years,” McGrath said in a statement. “In 2023, we are taking the next step in this transformation, with significant improvements in operating efficiencies.”

The company is adopting a shareholder rights plan, or poison pill, expiring in a year. The plan prevents a potential acquirer from building a large stake. The company said the reason for the move was to ensure that all interested parties had the chance to participate in the strategic review and “to provide the board and shareholders time to make informed decisions.”

The company said it doesn’t have a deadline for the completion of the strategic review.

Earnings for 2022 are scheduled to be released on Jan. 31.