Xylem has announced that it has entered into an agreement for the purchase of all shares of Canadian smart leak detection company Pure Technologies Ltd, expanding its presence in smart technologies following its previous acquisitions of Visenti and Sensus.
According to a statement from Xylem, its CAD $9.00 per share cash offer values the acquisition, which is subject to regulatory approvals, at US $397 million. Pure’s board approved the deal unanimously and has recommended it to its shareholders.
Pure has around 500 employees, and over the year to the end of September reported revenues of CAD $126 million, with CAD $21 million EBITDA. In its statement, Xylem said it 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’.
In its statement, Xylem President and CEO is quoted as 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… 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.’
- Xylem, Pure Technologies, Sensus, Visenti, smart water utilities