Roper Technologies, Inc. (Nasdaq: ROP) today
announced that it has 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. 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.
"The Syntellis transaction is another great
example of Roper’s disciplined and process-driven acquisition
approach,” said Neil Hunn, Roper Technologies’ President and CEO.
“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,” said Mr. Hunn. “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.”
The combined business will retain the Strata
Decision Technology name and be led by Strata’s CEO, John
Martino.
Acquisition financing and financial
outlook
The transaction 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.
About Roper Technologies
Roper Technologies is a constituent of the
S&P 500 and Fortune 1000. Roper has a proven, long-term track
record of compounding cash flow and shareholder value. The Company
operates market leading businesses that design and develop vertical
software and technology enabled products for a variety of
defensible niche markets. Roper utilizes a disciplined, analytical,
and process-driven approach to redeploy its excess capital toward
high-quality acquisitions. Additional information about Roper is
available on the Company’s website at www.ropertech.com.
About Strata Decision
Technology
Strata Decision Technology provides an
innovative cloud-based financial planning, analytics and
performance platform that is used by healthcare providers for
financial planning, decision support and continuous improvement.
Founded in 1996, the Company’s client base includes over 2,000
hospitals representing over 450 healthcare delivery systems. The
Company’s StrataJazz® application is a single integrated
software-as-a-service platform that includes modules for financial
planning, decision support and performance management. Strata’s
headquarters are in Chicago, IL. For more information, please visit
www.stratadecision.com/strata-and-syntellis.
About Syntellis Performance
Solutions
Syntellis Performance Solutions provides
innovative enterprise performance management software, data and
intelligence solutions for healthcare, higher education and
financial institutions. Syntellis’ solutions include Axiom,
Connected Analytics and Stratasan software. These solutions help
finance professionals elevate performance by acquiring insights,
accelerating decisions, and advancing their business plans. With
over 2,800 organizations and 450,000 users relying on its
solutions, Syntellis has proven industry expertise in helping
organizations transform their vision into reality. For more
information, please visit www.syntellis.com.
Contact information: Investor
Relations941-556-2601 investor-relations@ropertech.com
The information provided in this press release
contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements may
include, among others, statements regarding operating results, the
success of our internal operating plans, and the prospects for
newly acquired businesses to be integrated and contribute to future
growth, profit and cash flow expectations. Forward-looking
statements may be indicated by words or phrases such as
"anticipate," "estimate," "plans," "expects," "projects," "should,"
"will," "believes," "intends" and similar words and phrases. These
statements reflect management's current beliefs and are not
guarantees of future performance. They involve risks and
uncertainties that could cause actual results to differ materially
from those contained in any forward-looking statement. Such risks
and uncertainties include any ongoing impacts of the COVID-19
pandemic on our business, operations, financial results and
liquidity, which will depend on numerous evolving factors which we
cannot accurately predict or assess, including: the duration and
scope of the pandemic, new variants of the virus and the
distribution and efficacy of vaccines; any negative impact on
global and regional markets, economies and economic activity;
actions governments, businesses and individuals take in response to
the pandemic; the effects of the pandemic, including all of the
foregoing, on our customers, suppliers, and business partners, and
how quickly economies and demand for our products and services
recover after the pandemic subsides. Such risks and uncertainties
also include our ability to identify and complete acquisitions
consistent with our business strategies, integrate acquisitions
that have been completed, realize expected benefits and synergies
from, and manage other risks associated with, acquired businesses,
including obtaining any required regulatory approvals with respect
thereto. We also face other general risks, including our ability to
realize cost savings from our operating initiatives, general
economic conditions and the conditions of the specific markets in
which we operate, including risks related to labor shortages and
rising interest rates, changes in foreign exchange rates,
difficulties associated with exports, risks associated with our
international operations, cybersecurity and data privacy risks,
including litigation resulting therefrom, risks related to
political instability, armed hostilities, incidents of terrorism,
public health crises (such as the COVID-19 pandemic) or natural
disasters, increased product liability and insurance costs,
increased warranty exposure, future competition, changes in the
supply of, or price for, parts and components, including as a
result of the current inflationary environment and ongoing supply
chain constraints, environmental compliance costs and liabilities,
risks and cost associated with litigation, potential write-offs of
our substantial intangible assets, and risks associated with
obtaining governmental approvals and maintaining regulatory
compliance for new and existing products. Important risks may be
discussed in current and subsequent filings with the SEC. You
should not place undue reliance on any forward-looking statements.
These statements speak only as of the date they are made, and we
undertake no obligation to update publicly any of them in light of
new information or future events.
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