We are investigating whether the directors of Evoqua Water Technologies Corp. (NYSE: AQUA) (“Evoqua”) acted in the best interests of Evoqua shareholders in approving the sale of Evoqua to Xylem, Inc. (“Xylem”) in an all-stock transaction pursuant to which 0.480 shares of Xylem will be exchanged for each share of Evoqua. However, Xylem’s stock price is down today on the news, which has substantially reduced the value of the deal to Evoqua shareholders.
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Why is there an investigation?
On January 23, 2023, Evoqua announced that it had agreed to be acquired by Xylem in an all-stock transaction pursuant to which 0.480 shares of Xylem will be exchanged for each share of Evoqua. However, Xylem’s stock price is down today on the news, which has substantially reduced the value of the deal to Evoqua shareholders to below $50 per share.
The agreement has been approved by the Evoqua board of directors (“Board”).
“Our investigation concerns whether Evoqua’s Board acted in the best interests of Evoqua shareholders in approving the sale,” explained Joshua Fruchter, a partner in the firm. “This includes whether the acquisition price adequately compensates Evoqua shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for Evoqua in the last 90 days published on Seeking Alpha, there is a high price target for Evoqua of $54.00 per share, which is well above the implied deal price, especially given the substantial drop today in the price of Xylem.