Emerson Electric Co. (NYSE: EMR) said Wednesday it has invested in a Los Angeles-based manufacturing technology startup through its venture capital arm.
The Ferguson-based industrial technology and software firm said its Emerson Ventures arm has invested in First Resonance, which has developed software to help manufacturers manage and enhance operations. The amount of funding provided by Emerson Ventures to First Resonance was not disclosed.
First Resonance provides “operating system” software that’s used by manufacturers and designed for its users to get better insights and analysis on their manufacturing operations, helping them speed up production. First Resonance in December 2021 announced it had raised $14 million in a Series A funding round. It says manufacturers using its software include Joby Aviation, Woven by Toyota and space firm Astra.
“First Resonance’s mission aligns well with Emerson’s focus on innovation and its ongoing commitment to support manufacturers building revolutionary products,” said Karan Talati, co-founder and CEO of First Resonance, in a statement. “From climate and energy to new forms of transportation, space exploration and robotics, we are empowering companies to address the most pressing global challenges across both traditional and emerging industries. Through our people, the ION Factory OS, and now with the support of Emerson, we will continue to empower thousands of engineers, operators and manufacturers to connect and supercharge the future.”
Emerson said as part of its “value-add strategic investment approach” that it plans to work with First Resonance in efforts to bolster its technology, saying it believes the company’s focus around automation technologies will be an asset in helping the startup.
"As Emerson continues to accelerate its growth as a leading global automation company, we are constantly searching for innovative companies supporting the development of world-changing software and technologies," said Thurston Cromwell, Emerson vice president of development and innovation and head of Emerson Ventures, in a news release. "This strategic investment brings together Emerson's deep expertise in automation and First Resonance's operating system that helps companies modernize their technology, automate their processes and build transformational products of the future.”
Emerson in 2021 said it planned to provide $100 million to early stage companies in the next five years through its Emerson Ventures arm. It said then it would target investment in startups and technologies in three major areas: discrete automation solutions, environmentally sustainable technologies and industrial software.
Emerson in August reported fiscal 2023 third-quarter sales of more than $3.9 billion, up 14% from the year-ago quarter, and net earnings available to common stockholders of $9.4 billion, up from $921 million in the third quarter of fiscal 2022. The company's fiscal 2023 third-quarter net earnings include an $8.7 billion gain from discontinued operations, which include the divestiture of its majority interest in its Climate Technologies business.
Emerson announced in June that it would vacate its 164-acre Ferguson campus and lease 104,000 square feet in what's been renamed Emerson Tower, one of the buildings in Clayton's new $250 million Forsyth Pointe development. Some 400 Emerson employees are expected to relocate there in mid-to-late 2024.
