Xylem Inc., a leading global water technology company, announced it has completed the acquisition of Evoqua Water Technologies Corp., a leader in water treatment solutions and services, in an all-stock transaction valued at approximately $7.5 billion.
Headquartered in Washington, D.C., the combined company becomes the world’s largest pure-play water technology company, with $7.3 billion in pro forma revenue and more than 22,000 employees globally. Xylem’s portfolio of innovative solutions across the water cycle will help customers in utilities, industrial and commercial end markets address their most pressing water needs.
“Global awareness of water as a systemic risk to society has never been greater,” says Patrick Decker, president and CEO of Xylem. “Investment in water solutions continues to accelerate as communities and businesses around the world address intensifying challenges like water scarcity, quality and resilience to climate change — and how to address these issues in an affordable way. Our combination with Evoqua creates a transformative global platform to solve these critical water challenges at an even greater scale.”
The combined company’s executive leadership team will be led by Patrick Decker and includes senior leaders from both Xylem and Evoqua. Xylem also appointed Lisa Glatch and Lynn C. Swann, former Evoqua directors, to serve as members of its board of directors.
Glatch brings a strategic and financial perspective and more than 30 years of experience in senior leadership roles across the public and private sectors in the energy, chemicals, environmental, water and transportation industries. Swann has held various leadership roles across business, government and philanthropic organizations and is an experienced member of public company boards.
Under the terms of the transaction, each share of Evoqua common stock was converted into the right to receive .48 of a share of Xylem common stock. This results in Xylem shareholders owning approximately 75% and Evoqua shareholders owning approximately 25% of the combined company on a fully diluted basis.
“Today is an exciting milestone as we formally welcome our new colleagues to Xylem and bring the power of our combined capabilities to bear for our customers and communities every day,” Decker says. “Our complementary portfolios and end market exposure position us even more strongly for growth together, as we solve our customers’ water challenges and help make our communities more water-secure.”