Veralto Corp (NYSE:VLTO) climbed 3.3% in early Tuesday trading after the company unveiled a $435 million agreement to acquire In-Situ, a move that will broaden its footprint in the environmental water and hydrology technology sectors.
The transaction—expected to close in the first quarter of 2026—will fold In-Situ’s specialized water analytics and monitoring tools into Veralto’s Water Quality segment. In-Situ, headquartered in Colorado, provides instruments such as water-quality sensors, flow and level measurement devices, and cloud-based data-management platforms.
Veralto emphasized that In-Situ’s offerings complement its OTT HydroMet business, creating opportunities to enhance growth, scale operations, and expand into higher-growth end markets. The company anticipates about $11 million in pre-tax run-rate cost synergies by the end of year three post-closing.
“As a premier 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 while providing an ideal complement to OTT HydroMet’s product portfolio within our Water Quality segment,” said Jennifer L. Honeycutt, Veralto’s President and Chief Executive Officer.
In-Situ has delivered high single-digit revenue growth on average over the past three years and is projected to generate roughly $80 million in 2025 sales, with gross margins around 50% and EBITDA margins in the mid-teens.
Alongside the acquisition news, Veralto’s board authorized a $750 million share repurchase program, allowing the company to buy back stock through open-market purchases or privately negotiated transactions.
After factoring in estimated tax benefits, the net purchase price comes to approximately $422 million—about 19x In-Situ’s projected 2025 EBITDA including cost synergies. Veralto plans to fund the acquisition with existing cash and expects the deal to generate a double-digit return on invested capital within five years.