CALGARY—American water technology company Xylem Inc. has agreed to buy Canadian competitor Pure Technologies Ltd. for $509 million.
The U.S. company, which provides water infrastructure products and services to public utilities and industrial clients, among others, said the deal will strengthen its position in the fast-growing market for more advanced water and wastewater infrastructure.
Pure Technologies is headquartered in Calgary and has about 500 employees. It provides specialized engineering services and designs proprietary monitoring technologies for pipelines, bridges and structures.
The deal values the Canadian company at $9 per share, a nearly 103 per cent premium on the company’s closing price last week.
Two-thirds of Pure Technologies shareholders will need to approve the transaction. Company insiders own approximately 12.5 per cent of the company and have committed to approving the deal.
Xylem expects the acquisition to close early next year.