Pump manufacturer Xylem has inked a deal to buy smart meters, network technologies and advanced data specialist Sensus for US$1.7 billion (€1.5 billion).
Xylem said the deal advanced its strategy to be a leading provider of systems intelligence solutions in the global water sector.
It said Sensus’ had more than 80 million metering devices installed globally, while its FlexNet communications network technology uses licensed spectrum in the US and other geographies to provide secure connectivity solutions that support multiple applications.
Xylem said FlexNet network technology provided a platform for its future growth. It is acquiring Sensus from investment funds affiliated with The Jordan Company and GS Capital Partners 2000.
Patrick Decker, Xylem president and CEO said the deal was an important milestone for the company’s strategy to move forward with technology.
“With Sensus, we will acquire a strategically valuable asset that will accelerate our ability to bring systems intelligence solutions to customers across the water and energy industries, establish a foundation for future growth and create significant shareholder value.
“The combination of Xylem’s world-class brands and products with Sensus’ leading-edge smart technologies will create a differentiated offering that will better meet our customers’ evolving needs, including greater energy efficiency, water conservation, and improved life-cycle costs.
“Combining the advanced technology and R&D expertise and capabilities of both companies, we anticipate accelerating our delivery of innovative solutions to our customers, particularly in the area of advanced analytics across the water, wastewater and outdoor water sectors.
“Sensus’ network platform, FlexNet, can support many of Xylem’s connected product offerings and enable expansion into adjacent Internet of Things markets. We also see natural opportunities to extend the company’s advanced data analytics platform, which provides actionable insights for customers, to Xylem products. Both platforms provide a powerful foundation for future organic and inorganic growth opportunities.”