Xylem has announced it has reached a definitive agreement to acquire Sensus, a leader in smart meters, network technologies and advanced data analytics solutions for the water industry. Sensus, to be acquired for $1.7 billion, will advance Xylem’s strategy to be a leading provider of systems intelligence solutions in the global water sector.
Sensus has more than 80 million metering devices installed globally. Its FlexNet® communications network technology will provide a platform for Xylem’s products and solutions, and enable expansion into additional Internet of Things markets.
“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,” said Patrick Decker, Xylem President and Chief Executive Officer. “This will be an important milestone in our strategy to move Xylem’s portfolio of solutions up the technology curve.”
The combination of Xylem’s brands and products with Sensus’ smart technologies will help Xylem customers achieve greater energy efficiency, conserve water, and improve lifecycle costs.
“Sensus has a very broad product portfolio in metering and is well positioned in the advanced metering infrastructure (AMI) segment,” Decker said. “The AMI segment is growing at nearly twice the rate of the total metering space, driven in part by regulations and customers’ growing need for real-time data and reduced operational costs.”
Sensus generated $837 million in adjusted revenue and $159 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in fiscal 2016, which ended March 31, 2016. The company has approximately 3,300 employees and major locations in the U.S., United Kingdom, Germany, Slovakia, and China. Nearly 70 percent of 2016 revenues were generated in the U.S.