Roper Technologies aims to buy Vertafore with its $5.35 billion bid

Roper Technologies announced about the plan for its largest takeover acquisition deal for around $5.35 billion to takeover Vertafore Inc. Denver based Vertafore, is a private insurance software vendor known for developing leading software for the property and casualty insurance industry. In 2016, buyout firms Vista Equity Partners and Bain Capital acquired Vertafore from private equity firm TPG for $2.7 billion.

Roper Technologies competed with private equity firms in an auction for Vista and Bain’s Vertafore. Projected Vertafore acquisition is in line with Roper’s strategy of increase the stake in related software companies with strong recurring revenues. Like the situation globally, Roper also caught up under COVID-19 pandemic with decline in its customers spending plans but this acquirement manifests the company’s firm stand on its expansion plans.

If acquisition completes, Vertafore would juice in anticipated $590 million to Roper’s revenue and $290 million of earnings before interest, taxes, depreciation and amortization in 2021.

The feature by Insurance software industry related to providing instant access to customers’ information and cutting the insurance company’s costs is gaining the trend.

Roper will close the acquisition in third quarter and will be immediately effective for the company’s cash accretion. Hired by Roper, J.P. Morgan and Wells Fargo Securities paid the role of financial advisers for the acquisition.

Edward Hancock

Edward Hancock holds Master’s degree in Business Administration. After completing his post-graduation, Edward jumped the journalism bandwagon as a freelance news writer. Soon after that he landed a job of reporter and has been climbing the news industry ladder ever since to reach the post of editor. As an avid day trader, Edward is a master of technical analysis and writes tirelessly on how stocks are trading. He has extensive knowledge in technical analysis & news writing. Edward delivers news reports regarding Trending news category.

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