Emerson (NYSE: EMR) today announced an agreement to sell a 51 percent stake in its embedded computing and power business to Platinum Equity. Emerson will receive approximately $300 million in cash and will retain a 49 percent noncontrolling interest in the business, which will operate as an independent company. Share repurchase will be increased by $600 million to offset associated earnings dilution. “After extensive consideration, we have found an arrangement to exit this business in a manner that maximizes its value for our shareholders,” said Emerson Chairman and Chief Executive Officer David N. Farr. “The embedded computing and power business is a technology leader in the industry it serves, but no longer fits strategically in our portfolio. The transaction with Platinum will allow us to immediately focus on our core businesses while also participating in the upside from repositioning the business as it focuses on growth as an independent company.” With revenue of approximately $1.4 billion in 2012, Emerson’s embedded computing and power business, based in Carlsbad, Calif., is a market leader in the design and supply of technologies used in communications and computing equipment and other applications. “We have forged a strong partnership with Emerson, coming together in a way that will create success for everyone,” said Platinum Equity Chairman and Chief Executive Officer Tom Gores. “We will build on the foundation established under Emerson to further position the business as a strong and innovative competitor in the marketplace.” The transaction is expected to close in approximately three to six months, upon securing regulatory approvals in various countries. Once the transaction is completed, Emerson’s interest in the new entity will be reported using the equity method of accounting. Sales and earnings from the embedded computing and power business will continue to be reported in Emerson’s 2013 results, which will include a noncash pretax goodwill impairment of $503 million related to the business.