Roper Technologies Announces $1.65 Billion CentralReach Acquisition, Targets 20%+ Growth
Lekha Gupta 1 year ago
EquitiesLarge CapM&ANewsGuidance
Roper Technologies to acquire CentralReach for $1.65 billion, expects 20%+ organic revenue growth and plans to integrate into Application Software segment.
Roper Technologies, Inc. (NASDAQ:ROP) shares are trading higher on Monday after the company disclosed a deal to acquire CentralReach from Insight Partners for a net purchase price of around $1.65 billion.
The acquisition price factors in a $200 million tax benefit.
CentralReach offers cloud-based software designed to streamline the workflow and administration of Applied Behavior Analysis (ABA) therapy.
The platform also features AI-powered modules to enhance efficiency and care outcomes.
Roper plans to integrate CentralReach into its Application Software segment, with anticipated sustainable 20%+ organic revenue and EBITDA growth.
Notably, CentralReach is projected to generate around $175 million in revenue and $75 million in EBITDA for the 12 months ending June 30, 2026.
The acquisition, expected to close by April/May 2025, is subject to regulatory approval and customary conditions and will be financed through Roper’s revolving credit facility.
“This acquisition is another example of Roper identifying a business that provides greater value creation for our shareholders,” said Neil Hunn, Roper’s president and CEO.
”CentralReach meets each of our long-standing acquisition criteria, while also having a structurally faster organic growth profile and the ability to expand margins under Roper’s long-term ownership.”
As of FY24, the company had cash and equivalents of $188.2 million and net inventories worth $120.8 million.
Investors can gain exposure to the stock via Invesco Water Resources ETF (NASDAQ:PHO) and Invesco Global Water ETF (NASDAQ:PIO).
Price Action: ROP shares are up 0.42% at $574.58 at the last check Monday.
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