Water technology provider Xylem has agreed to acquire smart meter company Sensus for about $1.7bn.

A definitive agreement of acquisition has been entered in this regard, by both the companies. With this acquisition, Xylem would become a major player in the field of smart meters.

Sensus has over 80 million metering devices installed globally. The company's FlexNet communications network technology uses licensed spectrum in the US and other geographies and offers secure connectivity solutions that support various applications.

Adjusted earnings of Sensus were $837m and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was $159m for 31 March 2016.

Xylem president and CEO Patrick Decker said: “With Sensus, we will acquire a strategically valuable asset that will accelerate our ability to bring systems intelligence solutions to customers across the water and energy industries, establish a foundation for future growth and create significant shareholder value.

“This will be an important milestone in our strategy to move Xylem’s portfolio of solutions up the technology curve. The combination of Xylem’s world-class brands and products with Sensus’ leading-edge smart technologies will create a differentiated offering that will better meet our customers’ evolving needs, including greater energy efficiency, water conservation, and improved life-cycle costs.”

Sensus employs about 3300 with major locations in US, UK, Germany, Slovakia and China. About 70% of its income had come from the US.

Sensus president Randy Bays said: “Xylem is a highly respected company and we are confident that, together, we will have the resources and scale to continue advancing differentiated technology and delivering innovative solutions to our customers around the world.

"We look forward to working with the Xylem team to ensure a smooth transition and completing the combination as quickly as possible.”