Smart Water Deals Redraw the U.S. Utility Map

Xylem, Grundfos, and Netmore reshape U.S. smart water with strategic mergers and digital pivots

16 Oct 2025

A wave of strategic deals is rippling through the U.S. smart water sector, redefining how utilities approach innovation and integration.

In early October 2025, Xylem announced plans to sell its international metering operations outside North America, a move set to close in early 2026. By shedding those assets, the company aims to sharpen its focus on U.S. markets and invest more heavily in smart water systems and data analytics.

The shake-up does not stop there. In September, IoT network operator Netmore acquired Arson Metering, a Spanish specialist in smart metering and remote reading systems. The deal gives Netmore a stronger foothold in the connected metering space, showing how network firms are fusing hardware and connectivity into unified service models.

Meanwhile, Danish water technology giant Grundfos completed its takeover of Newterra, a U.S. firm focused on modular water and wastewater treatment. The acquisition signals a growing trend: infrastructure players expanding into flexible, scalable systems that combine treatment, reuse, and measurement.

Yet the broader water market has cooled. According to Bluefield Research, only 71 merger and acquisition deals were recorded in the first half of 2025, compared with 202 a year earlier. Industry watchers point to tighter capital markets, regulatory hurdles, and shifting investor sentiment as key factors.

Still, these high-profile transactions hint at where the next wave of growth may surface. Companies blending sensors, software, and connectivity are positioning themselves to dominate an industry increasingly defined by data. For traditional meter makers focused on hardware alone, that evolution could spell trouble.

As utilities demand integrated solutions rather than one-off upgrades, the race is on to build full-service smart water platforms. The winners, analysts say, will be those that merge water expertise with digital intelligence, turning infrastructure into insight and every drop into data.