ROP - Roper Technologies to acquire Procare Solutions | Benzinga
SARASOTA, Fla., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (NASDAQ:ROP) today announced that it has reached a definitive agreement to acquire Procare Solutions for a net purchase price of approximately $1.75 billion, including a $110 million tax benefit resulting from the transaction. The net purchase price represents approximately 18 times Procare's estimated EBITDA for the twelve months ending March 31, 2025.
Procare is a leading provider of cloud-based software for the management of early childhood education centers. Procare's purpose-built solutions serve as the system-of-record and workflow software for childcare centers, managing all aspects of day-to-day operations, including parent engagement, staff and teacher scheduling, classroom management, tuition billing, and payment processing. More than 37,000 childcare organizations utilize Procare's tools to digitally transform their operations and maintain strong relationships with their families and staff.
"Procare is a terrific business with clear niche market leadership, mission critical solutions, strong organic revenue growth, a high recurring and reoccurring revenue mix, outstanding customer retention, and excellent cash conversion," said Neil Hunn, Roper Technologies' President and CEO. "This acquisition demonstrates Roper's disciplined capital deployment strategy that focuses on identifying high-quality, market-leading technology businesses that will enhance Roper's long-term cash flow compounding. Procare has multiple paths to deliver long-term mid-teens organic growth, and we look forward to partnering with the Procare team to execute their strategy."
Procare's management team will continue to lead the business from its Denver, Colorado headquarters. Procare's name, brands, and office locations will not change as a result of the transaction.
Acquisition financing and financial outlook
Roper anticipates funding the transaction using its revolving credit facility.
Procare is expected to contribute approximately $260 million of revenue and $95 million of EBITDA for the twelve months ending March 31, 2025, and will be reported in Roper's Application Software segment. The transaction is expected to be accretive to Roper's 2024 free cash flow and 2025 adjusted DEPS. Roper expects Procare to deliver long-term mid-teens organic revenue growth.
Roper's management team looks forward to discussing this acquisition during its fourth quarter 2023 financial results conference call scheduled to take place at 8:00AM ET on Wednesday, January 31, 2024.
The transaction is expected to close later this ...