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Investing.com -- Veralto Corp (NYSE:VLTO) stock gained 3.3% on Tuesday after the water quality solutions company announced plans to acquire In-Situ for $435 million, expanding its presence in environmental water and hydrology markets.
The acquisition, expected to close in the first quarter of 2026, brings complementary water analytics technologies to Veralto ’s portfolio. Colorado-based In-Situ specializes in environmental water measurement and monitoring solutions, including water quality sensors and data management systems.
Veralto highlighted the strategic fit with its existing OTT HydroMet business, noting that the combination would create opportunities to accelerate growth and drive operational efficiency. The company expects to achieve approximately $11 million in pre-tax run-rate cost synergies by the end of the third year following the transaction’s completion.
"As a premier provider of water analytic technologies, In-Situ enables Veralto to tap into faster growing applications within the water ecosystem that are essential for public health and economic security while providing an ideal complement to OTT HydroMet’s product portfolio within our Water Quality segment," said Jennifer L. Honeycutt, Veralto’s President and Chief Executive Officer.
In-Situ has averaged high-single digit sales growth over the past three years and is expected to generate approximately $80 million in sales in 2025, with gross margin of about 50% and mid-teens EBITDA margin.
Separately, Veralto announced that its Board of Directors has authorized a share repurchase program of up to $750 million, which will be executed through various methods including open market and privately negotiated repurchases.
The acquisition price, after considering estimated tax benefits, is approximately $422 million, representing about 19 times In-Situ’s estimated 2025 EBITDA including expected cost synergies. Veralto plans to fund the deal with cash on hand and expects it to deliver a double-digit return on invested capital by year five.
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