Industrial-automation systems maker Emerson Electric plans to merge two of its software businesses with smaller rival Aspen Technology Inc in a deal worth about US$11 billion (A$15 billion), the Wall Street Journal reported.
The cash-and-stock transaction would value AspenTech at about US$160 per share, the report said, citing company officials.
The price implies a premium of about 27 percent to AspenTech's close on October 6, before Bloomberg News first reported talks between the two companies, and about 13 percent to the company's last close on Friday.
Emerson will own 55 percent of the combined company, while AspenTech shareholders will own the rest, the report said, adding that the new company will retain AspenTech's name and would be led by its current CEO Antonio Pietri.
Emerson helps power plants and factories in certain sectors operate more efficiently, while AspenTech makes software for companies in the mining, chemicals, manufacturing and pharmaceutical industries.
AspenTech shareholders will receive US$87 and 0.42 US cents per share of the combined company for each share they currently own, the Journal said, adding that the deal is expected to be announced later on Monday.
AspenTech has a market capitalisation of about US$9.49 billion, while Emerson is valued at more than US$57 billion, according to Refinitiv Eikon data.
Both companies did not respond to Reuters' requests for comment.