The Israeli agricultural technology company Water Ways Technologies, which provides water irrigation systems to agricultural producers across the globe, announced on Thursday that it will acquire a majority stake in Chilean irrigation start-up Hidrotop for $3.5 million.
Water Ways’ board approved the transaction, in which they will acquire 51% of Hidrotop’s shares for $2m. in cash and another $1.5m. in Water Ways shares – giving Hidrotop an evaluation of roughly $7m.
“We are very pleased to complete this Acquisition and welcome everyone at Hidrotop to the Water Ways family,” said Ohad Haber, Chairman and CEO of Water Ways Technologies. “The addition of Hidrotop expands the scope and reach of our smart irrigation projects business to South America and is in line with the strategic direction we’ve communicated,” Haber continued.
What is Hidrotop?
Founded in 1997, Hidrotop is a hydraulic engineering company with a regional presence in the agricultural and mining industry in Chile and Argentina. They work to optimize water usage, implement irrigation in rainy areas and implement high-end technologies in rural areas.
“We believe partnering with Water Ways Technologies is a win-win scenario for our valued employees and customers,” said Patricio Bambach, the CEO and major shareholder of Hidrotop.
”It is a very strong strategic fit and we see the same path to much larger and more profitable operations leveraging greater access to capital. This, in turn, will enable us to grow our smart irrigation projects business in Chile and reach out to other countries in South America to supply the growing demand for water,” Bambach said.
Israeli innovation in the water industry
Perhaps driven by necessity in Israel’s water-scarce geographical region Israeli water companies have continued Israel’s legacy of water innovation. Simcha Blass’s discoveries in the field of drip irrigation remain of critical importance to this day, while Israel has also proven to be a global leader in water desalination.
Israeli companies have continued to drive the global water revolution – Israeli company Watergen owns a unique patent that allows it to develop quality drinking water from the air, while national water company Mekorot develops and adopts advanced technologies that attract the attention of water corporations and organizations around the world.