Xylem set to acquire Sensus in $1.7B cash deal

Aug. 23, 2016

Using integration with the Sensus brand, Xylem is likely to “achieve at lease $50 million in annual cost synergies” within three years.

Global water technology company Xylem Inc. signed an agreement August 15 to acquire industry technology company Sensus for approximately $1.7 billion in a cash deal, according to Sensus.

In 2016, Sensus, provider of smart meters, network technology and data analytics services, generated $837 million in adjust revenue and $159 million in adjusted earnings before interest, taxes, depreciation and amortization. Nearly 70 percent of 2016 revenues were generated in the U.S.

Using integration with the Sensus brand, Xylem is likely to "achieve at lease $50 million in annual cost synergies" within three years.

"With Sensus, we will acquire a strategically valuable asset that will accelerate our ability to bring systems intelligence solutions to customers across the water and energy industries, establish a foundation for future growth and create significant shareholder value," Xylem President and CEO Patrick Decker said. "This will be an important milestone in our strategy to move Xylem’s portfolio of solutions up the technology curve."

The deal is expected to close in late 2016 and is subject to customary closing conditions and regulatory review.

Decker added, "As a combined company, we expect Xylem to grow faster and be more profitable."

A conference call with investors and interested parties was held August 15, and a replay is available at investors.xyleminc.com through August 29.

Sponsored Recommendations

Meet the future of MV switchgear

SureSeT new-generation metal-clad. Smarter. Smaller. Stronger.

A digital circuit breaker built for the future

EvoPacT medium voltage digital vacuum circuit breaker

The New Generation of Intelligent MV Switchgear

Step into the future of electrical infrastructure with Intelligent MV Switchgear - where traditional equipment becomes smart, providing real-time data on critical components like...

Switchgear goes digital with SureSeT

Discover what you can do with Square D natively digital MV metal-clad switchgear.