NYSE-listed global water technology company Xylem is buying smaller listed peer Evoqua in a $7.5bn (€7bn) deal.

Xylem said it has entered into an agreement to buy the water treatment solutions and services company.

As part of the deal, Evoqua shareholders will receive 0.480 shares of Xylem for each Evoqua share, representing a value of $52.89 per share or a 29% premium based on Xylem and Evoqua closing prices on Friday. The deal is subject to approval by shareholders of Xylem and Evoqua.

Evoqua shares closed Monday at $47.28 each, valuing the company at $5.8bn. The Pittsburgh headquartered company operates in more than 150 locations across nine countries.

Xylem, an American water technology provider, does business in more than 150 countries. The company’s shares closed Monday at $101.42 each, valuing the firm at $18.3bn.

Patrick Decker, president and CEO of Xylem, said: “Solving the world’s water challenges has never been more urgent. Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale.

“The combined company delivers an unparalleled portfolio of advanced technologies, integrated services and application expertise across the water cycle.”

Ron Keating, Evoqua’s president and CEO, said: “Joining forces with Xylem is an exciting opportunity for Evoqua and for our team members. This combination provides a platform to leverage our combined strengths and increase our impact to better address the most pressing and increasingly complex global water challenges.

“I am incredibly proud of what our team at Evoqua has achieved to date, providing mission-critical water treatment solutions to the market and for our customers. Along the way, we have earned a reputation for quality, safety and reliability around the world. Together with Xylem, we will drive innovation on a larger scale for our customers, positioning us to create even more value for our stakeholders.”

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