Ionics Inc., the water-purification company that called Watertown home, is being acquired by General Electric Co. for $1.1 billion in cash.
Ionics sells systems to desalinate seawater, treat wastewater, and recycle fluids.
Ionics' 2,350 employees doubles the size of GE Infrastructure's water and process technologies unit, which is based in Wilton, Conn., near GE headquarters in Fairfield.
GE is paying $44 per share for Ionics (NYSE: ION), nearly a 50 percent premium over its closing price yesterday. GE shares (NYSE: GE) dipped slightly Wednesday morning to $35.70 per share.
Ionics' two largest institutional shareholders are Baltimore-based T. Rowe Price Group (Nasdaq: TROW) and Boston's Fidelity Management & Research Corp.
Ionics vice president and director Lyman Dickerson holds 2.2 million shares, making him the largest individual stakeholder. Dickerson previously was president of Ecolochem International Ltd., which Ionics acquired earlier this year for $219 million in stock and 4.7 million shares.
Ionics recently reported a surge of interest in Ecolochem's vehicle-mounted mobile treatment units, which are dispatched in emergencies or periods of strained water supplies.
"Water is the lifeblood of industries and communities around the world, and scarcity, increasing demand and rising costs are driving the need to conserve, reuse and identify new supplies of this essential resource," said Bill Woodburn, chief executive of GE Infrastructure, in a prepared statement. "The combination of Ionics' technology, project experience, and services network with GE's operating and project-finance expertise will accelerate the development of technology solutions for the global water purification segment."
Ionics had third-quarter earnings of $890,000 and revenue of $118.1 million. GE had a $4 billion profit on sales of $38.2 billion in the third quarter.