Global water technology company Xylem announced that it has entered an agreement to acquire all the issued and outstanding shares of Pure Technologies, representing an enterprise value of $397m.
Pure’s board of directors has unanimously approved the transaction and recommends that Pure shareholders vote in favor of the transaction.
Commenting on the acquisition, Patrick Decker, Xylem president and chief executive officer, said: “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 provides diagnostic and analytics solutions and services based on proprietary technologies to address key water and wastewater infrastructure challenges.
It provides intelligent leak detection and condition assessment solutions for water distribution networks, a rapidly growing market driven by the increasing adoption of digital solutions to improve utilities’ capital and operating efficiency.
Earlier this year, Xylem and Pure entered into an exclusive commercial partnership in which Xylem represents Pure’s products and services in parts of the Middle East, India and Southeast Asia.
Decker added: “We have already begun executing on significant international growth opportunities through our existing commercial collaboration.
"Upon closing this transaction, those efforts will accelerate and expand globally. We are excited to be adding a tremendously talented team to Xylem that shares our commitment to bringing innovative solutions to the water industry.
"We look forward to continuing that work together to create substantial value for our customers and shareholders.”