Roper Technologies announced that it has reached a definitive agreement to acquire Procare Solutions for a net purchase price of approximately $1.75 billion, including a $110 million tax benefit resulting from the transaction. The net purchase price represents about 18 times Procare’s estimated EBITDA for the twelve months ending March 31, 2025.
Procare is a leading provider of cloud-based software for managing early childhood education centers. And Procare’s purpose-built solutions serve as the system-of-record and workflow software for childcare centers, managing all the aspects of day-to-day operations, including parent engagement, staff and teacher scheduling, classroom management, tuition billing, and payment processing. Over 37,000 childcare organizations utilize Procare’s tools to digitally transform their operations and maintain strong relationships with their families and staff.
Procare’s management team will continue leading the business from its Denver, Colorado headquarters. And Procare’s name, brands, and office locations will not change as a result of the transaction.
Roper anticipates funding the transaction using its revolving credit facility.
Procare is expected to contribute about $260 million of revenue and $95 million of EBITDA for the 12 months ending March 31, 2025, and will be reported in Roper’s Application Software segment. And the deal is expected to be accretive to Roper’s 2024 free cash flow and 2025 adjusted DEPS. Roper expects Procare to deliver long-term mid-teens organic revenue growth.
The deal is expected to close later this quarter, subject to regulatory approval and customary closing conditions.
KEY QUOTES:
“Procare is a terrific business with clear niche market leadership, mission critical solutions, strong organic revenue growth, a high recurring and reoccurring revenue mix, outstanding customer retention, and excellent cash conversion. This acquisition demonstrates Roper’s disciplined capital deployment strategy that focuses on identifying high-quality, market-leading technology businesses that will enhance Roper’s long-term cash flow compounding. Procare has multiple paths to deliver long-term mid-teens organic growth, and we look forward to partnering with the Procare team to execute their strategy.”
— Neil Hunn, Roper Technologies’ President and CEO
