Pittsburgh-based Evoqua announced Monday it had been acquired by global water technology company Xylem in a $7.5 billion stock transaction.
Evoqua, a mission-critical water treatment solutions and services company, brings to the combined company its leadership in North American water treatment and wastewater treatment, as well as its extensive network of service professionals and access to attractive industrial markets, the two companies said.
“Solving the world’s water challenges has never been more urgent. Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability, and resilience at even greater scale,” said Patrick Decker, president and CEO of Xylem. “The combined company delivers an unparalleled portfolio of advanced technologies, integrated services, and application expertise across the water cycle.”
In the year ending September 30, 2022, the two companies generated over $7 billion in combined revenue. Joining forces, the two companies said, allows them to pursue new growth opportunities and deliver run-rate synergies of $140 million within the next three years.
“Joining forces with Xylem is an exciting opportunity for Evoqua and for our team members. This combination provides a platform to leverage our combined strengths and increase our impact to better address the most pressing and increasingly complex global water challenges,” Evoqua President and CEO Ron Keating said. “I am incredibly proud of what our team at Evoqua has achieved to date, providing mission-critical water treatment solutions to the market and for our customers. Along the way, we have earned a reputation for quality, safety, and reliability around the world. Together with Xylem, we will drive innovation on a larger scale for our customers, positioning us to create even more value for our stakeholders.”
The deal, which provides Evoqua shareholders with .48 shares of Xylem for each Evoqua share, is expected to be complete in mid-2023, pending shareholder and regulatory approvals.