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Roper Technologies Buys Vertafore for $5.35B

August 13, 2020

Roper Technologies has reached a definitive agreement to acquire Vertafore in an all-cash transaction valued at approximately $5.35 billion.

Vertafore’s cloud-based software provides agency management, compliance, workflow, and data solutions that simplify and automate the complex property and casualty (“P&C”) insurance lifecycle. More than 20,000 agencies and 1,000 insurance carriers rely on Vertafore to streamline their processes, improve efficiency, and drive productivity.

“Vertafore is a fantastic business characterized by clear leadership in its niche market, a strong management team, high customer retention, and a long track record of consistent revenue and cash flow growth,” said Neil Hunn, Roper’s President and CEO. “The acquisition of Vertafore is a great example of our disciplined capital deployment strategy which focuses on durable, long-term cash flow compounding. We look forward to welcoming Vertafore to the Roper family.”

The Vertafore management team, led by CEO Amy Zupon, will continue to lead the business from its Denver, Colorado headquarters. Vertafore’s name, brands, and office locations will not change as a result of the transaction.

Acquisition Financing and Financial Outlook

Roper anticipates funding the transaction using its cash on hand, revolving credit facility, and new debt.

“We remain committed to maintaining our solid investment grade ratings,” said Mr. Hunn. “Our ability to consistently generate cash flow will allow us to rapidly reduce our leverage following this acquisition.”

Vertafore is expected to contribute approximately $590 million of revenue and $290 million of EBITDA in 2021. Roper expects the acquisition to be immediately cash accretive.

The transaction is expected to close in the third quarter, subject to regulatory approval and customary closing conditions.

J.P. Morgan and Wells Fargo Securities served as financial advisors to Roper on this transaction.

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