FILE PHOTO: U.S. 100 dollar notes are seen at a bank in this picture illustration in Seoul September 20, 2011. REUTERS/Lee Jae-Won/File Photo
(Reuters) -Roper Technologies agreed to acquire healthcare technology company CentralReach from Insight Partners for about $1.65 billion, the software company said on Monday.
The acquisition, which follows Roper's purchase of two cloud-based software providers last year, could help strengthen its business as it grapples with weak enterprise spending that is delaying contract renewals.
"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," Roper CEO Neil Hunn said.
He added that CentralReach had a clear niche market leadership and a high recurring revenue mix.
Roper creates specialized software and tech-enabled products for sectors such as healthcare, law, and data analytics.
CentralReach is expected to contribute about $175 million to revenue and $75 million of earnings before interest, taxes, depreciation, and amortization (EBITDA) for the 12 months ending June 30, 2026.
CentralReach provides software and services platform that helps therapists who serve children and adults diagnosed with autism spectrum disorder and related intellectual and developmental disabilities.
In 2024, Roper acquired cloud-based software providers Procare Solutions and Transact Campus. Procare offers software to manage early childhood education centers, while Transact Campus offerings are for higher education institutions.
Earlier this year, Roper forecast annual revenue growth to be more than 10%, compared with analysts' average estimate of 9.6%, according to data compiled by LSEG.
The transaction is expected to close in April or May 2025.
Roper's shares rose 1.1% in early trading.
(Reporting by Priyanka.G in Bengaluru; Editing by Anil D'Silva and Shailesh Kuber)
