On the 23rd of January Xylem Inc., a water technology company, together with Evoqua Technologies Corporation, a company specialising in advanced water treatment technology, announced that they have entered into an agreement under which Xylem will acquire Evoqua in an all-stock, transaction with a value of US $ 7.5 billion. This development makes Xylem the world’s second largest water company in the world after Veolia: Xylem’s expected annual turnover is estimated at US $ 7 billion as compared to Veolia’s almost US $ 31 billion from last year following its acquisition of Suez Lyonnais.
The acquisition is seen as a response to the rise in the level of risks presented by global water problems, requiring a comprehensive range of technologies and innovative responses, adding Evoqua’s advanced water and wastewater treatment capacities and network of professionals to Xylem’s leadership on the world stage. In addition, although utilities tend not to attract a lot of attention from investors, there has been increased pressure inside the United States to provide solutions as the drought in the west of the country imposes cutbacks in water consumption. Washington-based company Xylem is seen as responding to this pressure by extending the range of options it has, amongst others in the field of wastewater treatment.
“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.”