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.

A wave of acquisitions across Europe in 2024, such as M Group’s £1 billion deal with CVC Capital Partners and Sweco’s German expansion, underscores the importance of strategic M&A in strengthening market positions. Companies are using acquisitions to gain technological advantages, like Vestum AB’s acquisition of PDAS Holdings, which enhances Vestum AB’s digital capabilities in wastewater monitoring. This consolidation trend positions firms to capture the rising demand for operational efficiency and smart infrastructure solutions across Europe.

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.