Water M&A / Company Strategies

Digital water firms are increasingly leveraging M&A to build cloud and SaaS portfolios, resulting in a recent flurry of high-profile deals. In recent years, cloud and SaaS capabilities and opportunities have provided a key strategic rationale for a number of other major M&A deals in water and adjacent sectors. These include Schneider Electric’s acquisition of AVEVA, Koch Industries acquisition of Infor, and Bentley Systems’ acquisition of Seequent. >>Learn More

Reflecting the momentum from the end of 2020, the first quarter of 2021 saw three landmark deals worth US$1.0 billion or more in the water industry. Autodesk’s acquisition of Innovyze is a poignant example of the growing competitiveness of digital applications, while Quikrete’s purchase of Forterra and New Mountain Capital’s acquisition of Aegion stress the dependability and growth potential of the pipe construction and rehabilitation segment. >>Learn More

Global M&A dried up for most of Q2 2020 with only 20 (versus 49 in Q1) transactions globally. June has seen a resurgence with treatment-centric deals such as Nofitech Holding’s acquisitions of CM Aqua and Ratz Aqua as well as KKR’s and XPV’s partnership acquisitions Environmental Dynamics International indicating that companies are looking towards the future regarding an upswing in industrial water. This resurgence has been echoed in the European market, as the majority of June’s deals were conducted there, signalling that an opening of the United States economy will trigger additional M&A. >>Learn More

Anticipated growth in municipal and industrial water has put the spotlight on technology, equipment, and service providers seeking to accelerate their growth strategies. At the ready is a growing list of private equity investors that are trawling the industry value chain with varying levels of acquisitive success. At the forefront of this trend are investment funds led by players such as EQT, Blackstone Group, KKR, and New Mountain Capital. While these firms have worked the larger end of the deal flow, a multitude of smaller transactions are flying under the radar. >>Learn More