Roper Technologies (NYSE:ROP) is said to be in talks to acquire PE-owned insurance software vendor Vertafore for nearly $5.5B, and an agreement could be announced as soon as this month.
Vertafore's focus is on the property and casualty insurance industry, and acquiring the company would be in line with Roper's strategy of buying up software companies in niche markets with strong recurring revenues.
The Reuters report also said P-E firms Vista Equity Partners and Bain Capital bought Vertafore in 2016 from TPG for $2.7B including debt.
The tech company, out of Sarasota, Fla., announced its latest quarterly earnings in late July. Second-quarter GAAP and adjusted revenue each decreased 2% to $1.30 billion and $1.31 billion, respectively.
EBITDA decreased 2% to $461 million and EBITDA margin was 35.3%, flat versus the prior year. GAAP operating cash flow increased 49% to $449 million. Excluding $124 million of income tax payments deferred due to COVID-19, adjusted operating cash flow increased 8% to $325 million and adjusted free cash flow increased 10% to $315 million.
Said CEO Neil Hunn, "I am extremely proud of our business leaders for prioritizing the health and safety of our employees while executing at a high level during these challenging times.
"Despite the complexities associated with operating in the COVID-19 environment, we continued to invest for durable organic growth while generating outstanding cash flow. All-in-all, this was a very strong quarter for Roper."
ROP shares gained $2.35 to $443.25.
