Water Tech Company Xylem to Buy Evoqua in $7.5B Deal

Wahington, DC-based global water technology company Xylem (XYL) to acquire Pittsburgh, PA-based water treatment solutions and services provider Evoqua (AQUA) in an all-stock transaction with an enterprise value of approximately $7.5bn.

In an all-stock transaction, AQUA shareholders will receive 0.48 shares of XYL for each AQUA share, representing a value of $52.89 per share or a 29% premium based on Xylem and Evoqua closing prices as of January 20, 2023.

Xylem expects the acquisition to deliver $140 million in cost synergies within three years. The transaction is anticipated to close in the middle of the year.

“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.

Upon closing, Xylem shareholders will own approximately 75% and Evoqua shareholders will own the remaining portion of the combined company on a fully diluted basis.

Following the closing, the combined company will continue to be led by Decker. Two current members of the board of directors of Evoqua are expected to join Xylem’s board of directors.