Pure Technologies Ltd announced yesterday that it has entered into a definitive arrangement agreement with Xylem Inc. whereby Xylem will acquire all of the issued and outstanding shares of Pure for CAN$9 per share in cash, representing an enterprise value for Pure of CAN$509 million.
The purchase price represents a 102.7% premium to the closing price of Pure's common shares on the Toronto Stock Exchange on 8 December, 2017 and a 97.9% premium to the 20 day volume weighted average price for the period ending that day.
The Board of Directors of Pure, having received a unanimous recommendation from a special committee comprised solely of independent directors, has unanimously approved the transaction and recommends that Pure shareholders vote in favour of the transaction.
"The acquisition by Xylem is a highly positive outcome for our shareholders. The value being offered in this transaction is a recognition of the highly strategic and unique nature of Pure's business and technology," said Jamie Paulson, Executive Chairman of Pure. "In Xylem, Pure has found the right partner to accelerate growth and to have a positive impact on the water management ecosystem."
"Throughout Pure's evolution, we have been committed to delivering innovative and value-added solutions for our infrastructure clients," said Jack Elliott, President and CEO of Pure. "Following this transaction, as we become part of a global enterprise, we will be even better positioned to make a meaningful impact in solving the world's most pressing water and infrastructure challenges. The acquisition of our company by Xylem will be of substantial benefit to Pure, its clients, its shareholders and employees."
"The addition of Pure will strengthen Xylem's position as a leading provider of intelligent solutions that address the water industry's most persistent problems," said Patrick Decker, Xylem President and Chief Executive Officer.
Xylem is a leading global water technology company committed to developing innovative technology solutions to the world's water challenges.
Pure Technologies Ltd. is an international asset management, technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure's business model incorporates four distinct but complementary business streams:
- Premium technical services including pipeline inspection, leak detection and condition assessment.
- Specialised engineering services in areas related to asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure.
- Sales of proprietary monitoring technologies for pipelines, bridges and structures.
- Recurring revenue from data analysis, site maintenance, and from technology licensing.
Read the article online at: https://www.worldpipelines.com/business-news/12122017/pure-technologies-to-be-acquired-by-xylem/