Water technology company Xylem to acquire Pure Technologies for $397m
Global water technology company Xylem has agreed to purchase Canada-based Pure Technologies for $397m in cash.
Under the definite agreement, all the issued and outstanding shares of Pure Technologies will be acquired by Xylem for C$9.00 per share. Xylem will finance the transaction with cash and low interest, short-term debt.
Pure provides unique diagnostic and analytics solutions and services based on proprietary technologies to address key water and wastewater infrastructure challenges. It is a leader in intelligent leak detection and condition assessment solutions for water distribution networks, a rapidly growing market driven by the increasing adoption of digital solutions to improve utilities’ capital and operating efficiency.
Xylem president and chief executive officer Patrick Decker said: “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.
“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.
“Pure’s solutions strongly complement the broader Xylem portfolio, particularly our recently acquired Visenti and Sensus solutions, creating a unique and disruptive platform of diagnostic, analytics and optimisation solutions for clean and wastewater networks.”
With approximately 500 employees globally, Pure has corporate offices in Mississauga, Ontario, and Columbia, as well as regional offices across the US, Mexico, Colombia, Australia and China.
Expected to close in the first quarter of 2018, the transaction is subject to customary closing conditions, receipt of Canadian Court, Pure shareholders’ and regulatory approval under the Hart-Scott-Rodino Act (US).
Lazard is serving as financial advisor and Gibson, Dunn & Crutcher and Stikeman Elliott as legal counsel to Xylem.
McCarthy Tetrault acted as legal counsel to Pure and Osler, Hoskin & Harcourt as legal counsel to Pure’s Special Committee of its Board of Directors.