LAKEWOOD RANCH — A local technology company recently made the decision to divest one of its businesses for $2.68 billion — in cash.
Singapore Technologies Engineering Ltd. is expected to take over TransCore from Roper Technologies Inc. early next year, according to a statement. Lakewood Ranch-based Roper made the announcement in late October.
“ST Engineering will be a great owner for TransCore and will support the business as it pursues the next phase of its innovative work in traffic management, tolling technology, and smart city infrastructure,” says Neil Hunn, Roper Technologies’ president and CEO, in the press release. “We are grateful to Tracy Marks, TransCore’s President, and the entire TransCore team for their many contributions to Roper.”
TransCore is expected to generate approximately $545 million of revenue and $135 million of earnings before interest, taxes, depreciation and amortization in 2021.
“Over our 17-year ownership period, Roper’s governance and incentive system has enabled the TransCore leadership team to meaningfully improve project capabilities and product innovation, resulting in market share growth and sustained leadership within its niche market,” says Hunn. “Also, during this time, Roper added significant value to the DAT and Loadlink network software businesses by providing long-term investment support and an independent operating structure that enabled these businesses to substantially improve and expand their networks, resulting in attractive growth profiles that will continue to benefit Roper.”
Roper will retain its DAT and Loadlink network software businesses, which it acquired together with TransCore in 2004.
Roper expects this transaction to close in the first quarter of 2022, subject to customary closing conditions, including regulatory approvals.