Roper Technologies to acquire CentralReach for $1.65 billion

SARASOTA, Fla. – Roper Technologies, Inc. (NASDAQ: ROP), a significant player in the software solutions market with a market capitalization of $61.4 billion, has announced a definitive agreement to purchase CentralReach, a top provider of software for Applied Behavior Analysis (ABA) therapy, from Insight Partners. The transaction, valued at approximately $1.65 billion, includes a $200 million tax benefit and is expected to close by late spring, pending regulatory approval. The company’s stock is currently trading near its 52-week high at $572.18, reflecting strong market confidence. According to InvestingPro analysis, Roper’s current valuation appears to be fairly priced relative to its Fair Value.

CentralReach is renowned for its cloud-native software that supports professionals in managing and delivering ABA therapy to individuals with autism spectrum disorder (ASD) and related intellectual and developmental disabilities (IDD). The platform is utilized by over 200,000 professionals and offers a suite of specialized tools for various operational needs, including client setup, practice management, and clinical data collection, enhanced by AI-powered modules.

Neil Hunn, President and CEO of Roper, highlighted CentralReach’s niche market leadership, high return on investment solutions, and robust customer retention. He expressed confidence in the acquisition’s alignment with Roper’s acquisition criteria and the prospects for sustained organic growth and margin expansion under their ownership.

Financially, CentralReach is projected to contribute around $175 million in revenue and $75 million in EBITDA for the year ending June 30, 2026, with expectations of over 20% sustainable organic revenue and EBITDA growth. The acquisition will be financed through Roper’s revolving credit facility and will be integrated into Roper’s Application Software segment. This expansion aligns with Roper’s impressive track record, having achieved nearly 14% revenue growth in the last twelve months. InvestingPro subscribers can access 15+ additional insights about Roper’s growth metrics and financial health, which currently rates as "GOOD" based on comprehensive analysis.

Roper Technologies is a member of the Nasdaq 100, S&P 500, and Fortune 1000, known for its disciplined approach to acquisitions and its track record of shareholder value creation. CentralReach’s acquisition is in line with Roper’s strategy to invest in leading businesses with defensible niche markets.

The information regarding this acquisition is based on a press release statement by Roper Technologies.

In other recent news, Roper Technologies reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share of $4.81 and revenue reaching $1.88 billion, both above forecasts. The company demonstrated strong overall performance in 2024, with full-year revenue hitting $7 billion, marking a 14% year-over-year growth. Roper Technologies also declared a forthcoming dividend of $0.825 per share, scheduled to be paid on April 22, 2025, reflecting its consistent approach to shareholder value. In other developments, the company is reportedly considering the sale of its Neptune Technology Group division, which could be worth up to $4 billion, although discussions are still in early stages.

Meanwhile, TD Cowen reiterated its Buy rating for Roper Technologies, maintaining a $650 price target, citing the company’s resilience and potential for growth amidst market uncertainties. Roper’s strategic use of artificial intelligence has been recognized as a key factor in its ongoing improvement. Additionally, the company launched Procare Professional Development, an accredited training platform for child care providers, which highlights its commitment to empowering educators. These recent developments underscore Roper Technologies’ ongoing strategic initiatives and financial performance.

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