LAKEWOOD RANCH — Diversified technology company Roper Technologies Inc. has reached a definitive agreement to acquire Vertafore in an all-cash transaction valued at approximately $5.35 billion.
Lakewood Ranch-based Roper anticipates funding the transaction using its cash on hand, revolving credit and new debt, according to a press release. Roper operates businesses that design and develop software (both license and software-as-a-service) and engineered products and solutions for a variety of niche end markets.
Vertafore’s cloud-based software provides agency management, compliance, workflow and data solutions for the property and casualty insurance industry. More than 20,000 agencies and 1,000 insurance carriers use Vertafore, the release says.
“Vertafore is a fantastic business characterized by clear leadership in its niche market, a strong management team, high customer retention, and a long track record of consistent revenue and cash flow growth,” says Roper President and CEO Neil Hunn in the statement. “The acquisition of Vertafore is a great example of our disciplined capital deployment strategy which focuses on durable, long-term cash flow compounding.”
The Vertafore management team, led by CEO Amy Zupon, will continue to lead the business from its Denver, Colo., headquarters. Vertafore’s name, brands and office locations will not change as a result of the transaction.
Vertafore is expected to contribute approximately $590 million of revenue and $290 million of EBITDA in 2021. Roper expects the acquisition to be immediately cash accretive. The transaction is expected to close in the third quarter, subject to regulatory approval and customary closing conditions.
Roper reported $5.37 billion in gross revenue in 2019.