Roper Technologies Buys Vertafore for $5.35B
August 13, 2020
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
Acquisition Financing and Financial Outlook
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.