Xylem to acquire smart infrastructure company Pure Technologies

Xylem to acquire smart infrastructure company Pure Technologies

Xylem has announced that it has entered into a definitive agreement to acquire Pure Technologies Ltd. The company provides unique diagnostic and analytics technologies and services that address key water and wastewater infrastructure challenges.

Pure Technologies is a leader in intelligent leak detection and condition assessment solutions for water distribution networks. This is a rapidly growing market, driven by utilities adopting digital solutions to improve their capital and operating efficiency.

“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,” said Patrick Decker, Xylem President and Chief Executive Officer. “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.”

Earlier this year, Xylem and Pure entered into an exclusive commercial partnership in which Xylem represents Pure Technologies’ products and services in parts of the Middle East, India and Southeast Asia.

“Pure’s solutions strongly complement the broader Xylem portfolio, particularly our recently acquired Visenti and Sensus solutions,” Decker continued. “This acquisition would add to our unique and disruptive platform of diagnostic, analytics and optimization solutions for clean and wastewater networks. Pure will also bring greater scale to our growing data analytics and software-as-a-service capabilities. As one company, we will provide customers with even more powerful and innovative solutions enabled by cutting-edge technologies.”

Headquartered in Calgary, Alberta, Pure has approximately 500 employees globally. It has corporate offices in Ontario and Maryland, as well as regional offices across the U.S., Mexico, Colombia, Australia and China. Approximately 90 percent of its 2016 revenues were generated in North America.

“Throughout Pure’s evolution, we have been committed to delivering innovative and value-added solutions for our infrastructure clients,” said Jack Elliott, President and CEO of Pure. “Following this transaction, as we become part of a larger, global enterprise, we will be even better positioned to make a meaningful impact in solving the world’s most pressing water and infrastructure challenges. The acquisition of our company by Xylem will be of substantial benefit to Pure, its clients and employees.”

Pure Technologies reported consolidated revenue of CAD $126 million and CAD $21 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ending September 30, 2017.

“We have already begun executing on significant international growth opportunities through our existing commercial collaboration,” said Decker. “Upon closing this transaction, those efforts will accelerate and expand globally. We are excited to be adding a tremendously talented team to Xylem that shares our commitment to bringing innovative solutions to the water industry. We look forward to continuing that work together to create substantial value for our customers and shareholders.”

by Chad Henderson