On Friday, water management technology company Xylem (NYSE:XYL) announced that it has acquired privately held Australian water and wastewater tech and services firm MultiTrode for approximately $26 million.

Explaining the purchase, Xylem President and Chief Executive Officer Gretchen McClain noted that "an essential part of Xylem's growth strategy is to acquire companies that complement our own technology and geographic presence." The MultiTrode purchase facilitates both these goals, first by expanding Xylem's presence in Australia and adding technology for "reducing energy consumption, call-outs, failures, and overflows."

Financially, MultiTrode recorded $13 million in sales in fiscal 2012, resulting in a price-to-sale valuation of about 2 on the purchase, significantly higher than the 1.3-times-sale valuation that Xylem's own shares carry. Unsurprisingly, then, Xylem's shares sat out Friday's stock market rally, closing down a small fraction of a percent at $27.49.