Xylem to expand its intelligent water services portfolio with its planned acquisition of infrastructure inspection and monitoring company, Pure Technologies Ltd.
On December 11, 2017, Pure announced that it has entered into a definitive arrangement agreement with Xylem Inc. whereby Xylem will acquire all of the issued and outstanding shares of Pure.
Pure said its shareholders will receive $9.00 per share in cash, representing a 102.7% premium to the closing share price on December 8, 2017, and giving Pure an enterprise value of $509 million. Its board of directors unanimously approved the transaction and recommended that company shareholders vote in favour of the transaction.
Pure is an international asset management, technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure. According to the company, its business streams include:
- Technical services, including pipeline inspection, leak detection and condition assessment;
- Asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure;
- Sales of proprietary monitoring technologies for pipelines, bridges and structures; and
- Data analysis, site maintenance, and technology licensing.
“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 chief executive officer. “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.”
According to Decker, acquiring Pure’s technologies complements Xylem’s diagnostic, analytics and optimization portfolio, which includes recently acquired companies Visenti and Sensus.
The transaction is subject to various customary closing conditions, including receipt of court approval, Pure shareholder approval, and regulatory approval under the Hart-Scott-Rodino Act (United States), according to Pure.
For more information, visit: www.puretechltd.com