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 through August 29.