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US: Xylem to pay $1.7 billion for Sensus Water-Technology

By  |  August 15, 2016

Xylem, a maker of wastewater and water treatment systems, agreed to acquire Sensus for about $1.7 billion to add faster-growing data and metering services to its portfolio.

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    The deal gives access to Sensus’s more than 80 million smart meters, which serve the gas, electric and water industries, Xylem said in a statement Monday. The companies complement each other geographically: the U.S. accounted for 67 percent of Sensus revenue in its past fiscal year and 41 percent of sales for Rye Brook, New York-based Xylem.

    “Sensus also puts Xylem into new end markets, which can provide additional opportunities for future growth,” said Janney Montgomery Scott analyst Michael Gaugler in a research note. Sensus increases offerings in the gas and electric utility markets with its “smart systems” network, which enables utility providers to make distribution more efficient, Xylem said.

    The expected long-term growth rate for Sensus is 6 percent to 7 percent, compared with Xylem’s rate of 3 percent to 5 percent, Gaugler said.

    Full Content: Bloomberg

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