Roper Technologies (NYSE:ROP) said on Thursday it would buy Vertafore, a private equity-owned insurance software vendor, for about $5.35 billion, in what would be its largest takeover deal to date.
Media reports initially came out that the company was competing with private equity firms in an auction for Vertafore, which is owned by buyout firms Vista Equity Partners and Bain Capital.
Acquiring Vertafore would be in line with Roper’s strategy of snapping up software companies in niche markets with strong recurring revenues.
It also signals that the highly acquisitive company has not given up on its expansion plans in the wake of the COVID-19 pandemic, which has caused some of its customers to review their spending plans.
According to Vertafore CEO Amy Zupon, "In Roper we have found a partner who shares both our vision and our values,Their acquisition of Vertafore is validation of our strategy to provide innovative and critical solutions to our customers. Roper’s long-term mindset and proven model in selecting niche market leaders offers Vertafore a platform from which we can accelerate our commitment to helping our customers further modernize their operations. We are excited to have found a permanent home for our great company."
Since 2016, Vertafore has added more than 500 employees and improved its customer net promoter score by 200%, while meaningfully increasing its annual recurring sales and investment in its products. As part of the Roper family of companies, Vertafore will continue to be led by Zupon.
ROP shares gained $1.85 to $448.80.
