Emerson Electric Co. is in talks over a combination with Aspen Technology Inc. to create an industrial software giant, according to people with knowledge of the matter.

Emerson is discussing a deal to merge its software assets with Aspen Tech and gain majority control of the combined entity for its shareholders, the people said, asking not to be identified because talks are private.

Aspen Tech would keep its own public listing, they said. No final decisions have been made and talks may fall apart, the people said.

A representative for Emerson declined to comment. Aspen Tech didn’t immediately respond to a request for comment.

The deal would be Emerson’s latest in the software space, as it seeks to help customers use technology to monitor and digitise their operations. Last year, it agreed to buy Open Systems International for US$1.6bil . Emerson’s shares are up 19% this year for a market valuation of US$57bil .

Aspen Tech, with a market value of about $8.4 bill , makes software for companies in industries such as chemicals, manufacturing, energy, metals and mining. It has previously considered a range of options, including a sale of all or part of the company.

 - Bloomberg