(Reuters) – Xylem Inc said on Monday it would acquire Evoqua Water Technologies Corp in an all-stock deal valued at $6.42 billion, boosting its wastewater treatment solutions and providing it access to several industrial markets.
Evoqua stockholders will receive 0.480 share of water technology company Xylem for each share held, representing a premium of about 29% based on the shares last close.
Xylem, which manufactures equipment used in water and wastewater applications, in 2016 acquired Sensus USA Inc, a provider of advanced metering technologies to utilities. Shares of the company were down nearly 9% in premarket trade.
The deal, which is expected to close in mid-2023, comes amid rising demand for fresh water due to population growth, industrial expansion and increased agricultural development.
Pittsburgh, Pennsylvania-based Evoqua operates in more than 150 locations across nine countries and provides wastewater treatment solutions to industrial, municipal and recreational customers.
After the deal closes, the combined company will be led by Xylem’s president and chief executive officer, Patrick Decker.
Lazard and Guggenheim Securities served as financial advisers to Xylem, while Gibson, Dunn & Crutcher LLP was its legal adviser.
(Reporting by Nathan Gomes in Bengaluru; Editing by Vinay Dwivedi)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.