Xylem Inc. to acquire Pure Technologies
Global water technology company Xylem Inc. has announced that it’s entered a “definitive agreement” to acquire Pure Technologies Ltd. for $397 million. Pure’s board of directors has approved the transaction and recommends that the company’s shareholders vote in its favour.
Pure fits in well with Xylem’s existing offering: it’s a market leader in intelligent leak detection and condition assessment for water distribution networks (an area Xylem’s earlier acquisition of Sensus already gave it capabilities in), and provides “unique diagnostic and analytics solutions and services based on proprietary technologies to address key water and wastewater infrastructure challenges”
Xylem’s share price has increased by 37% so far this year
SOURCE: Yahoo Finance
Patrick Decker, Xylem’s CEO, released a statement saying: "The addition of Pure will strengthen Xylem's position as a leading provider of intelligent solutions that address the water industry's most persistent problems.”
“Aging infrastructure is a top concern of water utilities around the world, and infrastructure assessment is an attractive, growing market that directly addresses this challenge in a cost-effective way. Pure's solutions strongly complement the broader Xylem portfolio, particularly our recently acquired Visenti and Sensus solutions, creating a unique and disruptive platform of diagnostic, analytics and optimization solutions for clean and wastewater networks.”
“Pure will also bring greater scale to our growing data analytics and software-as-a-service capabilities. As one company, we will provide customers with even more powerful and innovative solutions enabled by cutting-edge technologies."
Decker also said that the companies had already “begun executing on significant international growth opportunities” as part of a pre-existing partnership. Now that that partnership has been deepened, he expects it to be easier to “create substantial value for our customers and shareholders.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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