By Sam Boughedda
Xylem (NYSE:XYL) said Monday that it will acquire Evoqua Water (NYSE:AQUA), a water treatment solutions and services business, in an all-stock transaction with an implied enterprise value of approximately $7.5 billion.
Water technology company Xylem said the combined company will be "uniquely positioned to develop and deliver an even more comprehensive offering of innovative solutions" while it will also provide "compelling new growth opportunities."
The deal will see Evoqua shareholders receive 0.480 shares of Xylem for each Evoqua share they hold, representing a value of $52.89 per share or a 29% premium based on the closing prices of both companies on January 20.
The deal is expected to close in mid-2023 and will result in Xylem shareholders owning approximately 75% and Evoqua shareholders owning around 25% of the combined company.
Once the deal is complete, the combined business will be led by Patrick Decker, Xylem's President, and CEO, with two current members of the Evoqua board of directors expected to join Xylem's board of directors.
"Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale," commented Decker. "The combined company delivers an unparalleled portfolio of advanced technologies, integrated services and application expertise across the water cycle."