January 2018 Vol. 73 No. 1
Newsline
Xylem Acquires Pure Technologies
Xylem Inc., a leading global water technology company, has entered into a definitive agreement to acquire all the issued and outstanding shares of Pure Technologies Ltd. for CAD$9.00 per share in cash, representing an enterprise value of USD$397 million.
Pure Technologies provides unique diagnostic and analytics solutions and services, based on proprietary technologies, to address key water and wastewater infrastructure challenges. It is a leader in intelligent leak detection and condition assessment for water distribution networks, a rapidly growing market driven by the increasing adoption of digital solutions to improve utilities’ capital and operating efficiency.
“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,” said Patrick Decker, Xylem president and CEO. “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 … creating a unique and disruptive platform of diagnostic, analytics and optimization solutions for clean and wastewater networks,” he added.
The partnership actually began earlier, through the companies’ July 2017 exclusive commercial agreement for Xylem to represent Pure’s products and services in parts of the Middle East, India and Southeast Asia.
Pure reported consolidated revenue of CAD$126 million and CAD$21 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ending Sept. 30, 2017. Xylem expects to achieve at least $12 million in annual cost synergies within two years of closing, including elimination of redundant public company costs, and procurement and footprint consolidation opportunities.
Expected revenue synergies include accelerated international growth and cross-selling of complementary customer solutions. transaction is subject to various customary closing conditions, including receipt of Canadian Court, Pure shareholders’ and regulatory approval under the Hart-Scott-Rodino Act (United States). It is expected to close in the first quarter of 2018.
FOR MORE INFORMATION
Xylem Inc., (914) 323-5700, xylem.com
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