General Electric Co. Wednesday said it would buy Ionics Inc. for about $1.1 billion to build out its water treatment and services business.
GE said it will pay $44 per share cash for Ionics, a premium of 48 percent over Ionics' closing price Tuesday of $29.75 on the New York Stock Exchange.
The merger is subject to approval from the holders of two-thirds of Ionics' common shares outstanding.
Stockholders, representing 20 percent of the outstanding Ionics stock, have already agreed to the transaction, the two companies said in a statement. GE will also assume Ionics' existing debt.
The deal is expected to close in the first half of 2005.
Ionics designs, installs, operates and maintains water purification and waste-water treatment systems.
GE targets water purification as one of its growth platforms as more stringent environmental regulations drive demand for systems that reduce waste into water supply.
