Veralto has announced that it has entered into a definitive agreement to acquire In-Situ, a recognised provider of environmental water measurement and monitoring technologies. The acquisition, valued at $435 million (approximately $422 million after estimated tax benefits), is expected to close in the first quarter of 2026, subject to standard closing conditions.
Alongside the acquisition announcement, Veralto’s Board of Directors has authorised a share repurchase programme of up to $750 million, allowing the Company to buy back shares over time through open market or privately negotiated transactions.
Expanding water analytics capability
Based in Colorado, In-Situ supplies water quality sondes, sensors and data management solutions for surface water and groundwater monitoring. The company has demonstrated long-term growth and is forecast to achieve approximately $80 million in 2025 sales, with gross margins of around 50% and mid-teens EBITDA margins.
In-Situ’s technologies complement Veralto’s existing OTT HydroMet portfolio, strengthening Veralto’s reach in high-growth hydrology and environmental water quality applications. The combined offering is expected to provide greater coverage in both surface and groundwater monitoring markets and create opportunities for operational efficiencies.
Leadership perspectives
Jennifer L. Honeycutt, President and Chief Executive Officer of Veralto, said: “As a 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. The combination of In-Situ and OTT HydroMet will create opportunities to accelerate growth and deliver value for all stakeholders.”
Christopher McKee, Chairman of In-Situ, said: “As I reflect on In-Situ’s journey and this next chapter with Veralto, I’m filled with gratitude for the people who have built this organisation. Joining Veralto creates an opportunity to expand our global impact and strengthen our mission to protect the environment and improve lives.”
Expected synergies and investment outlook
Veralto anticipates pre-tax annual cost synergies of approximately $11 million by the end of year three following the close of the transaction, with further operational efficiencies expected beyond this period. Additional commercial synergies are projected through alignment with the OTT HydroMet portfolio.
The acquisition, funded with cash on hand, is expected to deliver a double-digit return on invested capital by year five. Based on the adjusted purchase price of $422 million and estimated EBITDA including anticipated synergies, the transaction represents a multiple of approximately 19x In-Situ’s estimated 2025 EBITDA.
