Xylem Bets on Swiss Tech to Outsmart the Next Flood

Xylem’s acquisition of Swiss firm Heusser signals a shift toward real-time, data-driven stormwater defense across Europe

2 Jan 2025

Cities usually notice their stormwater systems only when they fail. Basements flood, streets fill and regulators ask awkward questions. As rainfall grows heavier across Europe, those moments are becoming more frequent and more costly. Against that backdrop Xylem, an American water-technology firm, has made a small but telling purchase.

In December 2024 it bought Heusser Water Solutions, a Swiss company best known for pumps and flow controls. The deal deepens Xylem’s presence in the DACH region of Germany, Austria and Switzerland, but its real value lies elsewhere. Heusser has spent recent years shifting from metal to data, building sensors that track flows in real time and warn of overflows before they happen.

That change fits neatly with Xylem’s strategy. Utilities are under pressure from tougher European rules on runoff and pollution, yet many rely on ageing pipes designed for a milder climate. Digging them up is slow and unpopular. Digital monitoring, by contrast, promises quicker gains. Software can decide when to divert water, throttle pumps or issue alerts, all without pouring new concrete.

“This acquisition is about future-proofing how we manage water,” said a source familiar with the deal. “We’re moving from reactive fixes to predictive intelligence.” By folding Heusser’s sensors into its own platforms, Xylem hopes to sell cities a single package of hardware, analytics and long-term services, an approach that appeals to municipalities trying to control costs.

The timing looks good. Across Europe stormwater management is quietly changing character. Grey infrastructure still matters, but cloud-based systems that squeeze more capacity from what already exists are spreading fast. Investors like the steadier revenues that come from software and service contracts, rather than one-off equipment sales.

There are risks. Water rules differ by country, even by region, and aligning digital tools with local standards can slow adoption. Integrating a Swiss specialist into a global firm also brings the usual cultural and technical frictions. Still, few doubt the direction of travel.

“This isn’t just a smart acquisition,” one European analyst observed. “It’s a signal that the future of water is digital, adaptive, and faster than the next storm.”

As climate stress grows, stormwater systems will remain largely out of sight. Their intelligence, however, is moving firmly online.