Roper Technologies, a manufacturer of engineered products, has declared its intention to purchase Procare Solutions from Warburg Pincus and TA Associates. The proposed transaction, valued at roughly $1.75 billion, also includes a $110 million tax benefit.
Procare, a provider of integrated management software for child care centers, is expected to add around $260 million in revenue and $95 million EBITDA to Roper's Application Software division by the end of March 2025.
Roper also claimed that the acquisition would be revenue accretive to its cash flow by 2024 and to its adjusted DEPS by 2025. Hence, it is expected to support the company's long-term revenue growth.
The acquisition, set to be financed through Roper's credit facility, is anticipated to be finalized in the first quarter of 2024.
In light of the announcement, Roper's stock has increased 0.41 percent in pre-market activity, priced at $550 per share on the Nasdaq.
