Why Shares of Evoqua Water Technologies Surged This Week
Shares in water and wastewater treatment solutions company Evoqua Water Technologies (NYSE: AQUA) rose 15.5% this week through Thursday. The big news was Xylem's (NYSE: XYL) acquisition of the company in an all-stock transaction valuing Evoqua at around $7.5 billion.
The deal makes good operational sense for both companies. Xylem generates 55% of its sales internationally. In comparison, Evoqua generates 82% of sales from the U.S.
Being part of a larger company with an established presence in Asia and Europe will help Evoqua's products find a new audience. Building scale in new geographies is difficult, and Xylem will also benefit from an expanded product range.
Source Fool.com
