Roper Technologies recently announced that it completed the acquisition of Syntellis Performance Solutions for a net purchase price of $1.25 billion, including a $135 million tax benefit resulting from the transaction. And the net purchase price represents approximately 15 times Syntellis’ expected 2024 EBITDA.
Syntellis is a leading provider of cloud-based performance management and data solutions for healthcare, financial institutions, and higher education and will be combined with Roper’s Strata Decision Technology business, a leading provider of healthcare financial planning, decision support, and performance management solutions.
This combined business will retain the Strata Decision Technology name and be led by Strata’s CEO, John Martino.
The deal closed on August 7, 2023 and Roper funded the acquisition using its cash on hand and revolving credit facility.
Syntellis is expected to contribute approximately $185 million of revenue and $85 million of EBITDA in 2024, including planned cost synergies.
KEY QUOTES:
“The Syntellis transaction is another great example of Roper’s disciplined and process-driven acquisition approach. Syntellis is a fantastic business that meets all of our acquisition criteria, including niche market leadership, mission-critical solutions, a high recurring revenue mix, strong customer retention, negative working capital, and excellent cash conversion.”
“Bringing together Strata and Syntellis will enhance the innovation and value that can be delivered to their combined customer base. We are excited to welcome Syntellis to the Roper family and look forward to partnering with the new combined business on its numerous long-term growth opportunities.”
— Neil Hunn, Roper Technologies’ President and CEO
