Evoqua Water Technologies Corp

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Ademi LLP is investigating Evoqua (NYSE: AQUA) for possible breaches of fiduciary duty and other violations of law in its transaction with Xylem.

Ademi LLP alleges Evoqua’s financial outlook and prospects are excellent and yet Evoqua shareholders will receive only 0.480 shares of Xylem for each Evoqua share, representing a value of $52.89 per share based on Xylem and Evoqua closing prices as of January 20, 2023, reflecting an implied enterprise value of approximately $7.5 billion. The transaction agreement unreasonably limits competing bids for Evoqua by imposing a significant penalty if Evoqua accepts a superior bid. Evoqua insiders will receive substantial benefits as part of change of control arrangements.