Roper Technologies is a diversified conglomerate whose subsidiaries specialize in several different niche industries. Their $5.3 billion acquisition of Vertafore is in line with that strategy. The cloud based software company provides services to 20,000 insurance agencies and 1,000 insurance carriers, helping streamline processes and improve efficiency.
The acquisition is being financed through a mix of cash on hand, a revolving credit facility, and new borrowings. Despite the additional debt that is being taken on, Roper emphasised that it is committed to maintaining its investment grade status.
The deal is expected to add $590 million to revenues and $290 million to EBITDA in 2021. It’s also expected to be immediately cash accretive, which should help Roper begin the deleveraging process.