SARASOTA, Fla., Aug. 13, 2020 (World NEWSWIRE) — Roper Systems, Inc. (NYSE: ROP), a primary diversified technological innovation corporation, currently introduced that it has attained a definitive agreement to acquire Vertafore in an all-cash transaction valued at somewhere around $5.35 billion.
Vertafore’s cloud-primarily based software gives company administration, compliance, workflow, and details remedies that simplify and automate the elaborate home and casualty (“P&C”) insurance policies lifecycle. Additional than 20,000 businesses and 1,000 insurance coverage carriers rely on Vertafore to streamline their procedures, strengthen efficiency, and generate productiveness.
“Vertafore is a fantastic business characterized by clear leadership in its area of interest market, a powerful administration group, higher client retention, and a prolonged keep track of record of constant revenue and funds move advancement,” claimed Neil Hunn, Roper’s President and CEO. “The acquisition of Vertafore is a terrific instance of our disciplined capital deployment method which focuses on strong, extensive-term money flow compounding. We search ahead to welcoming Vertafore to the Roper family.”
The Vertafore management staff, led by CEO Amy Zupon, will proceed to direct the enterprise from its Denver, Colorado headquarters. Vertafore’s identify, brands, and place of work spots will not modify as a consequence of the transaction.
Acquisition Funding and Fiscal Outlook
Roper anticipates funding the transaction applying its income on hand, revolving credit score facility, and new personal debt.
“We stay dedicated to preserving our strong investment decision quality ratings,” reported Mr. Hunn. “Our means to continually crank out cash flow will permit us to fast lower our leverage following this acquisition.”
Vertafore is predicted to contribute approximately $590 million of earnings and $290 million of EBITDA in 2021. Roper expects the acquisition to be right away funds accretive.
The transaction is expected to close in the 3rd quarter, matter to regulatory approval and customary closing conditions.
J.P. Morgan and Wells Fargo Securities served as financial advisors to Roper on this transaction.
Convention Phone to be Held at 8:30 AM (ET) These days
A convention get in touch with to focus on this acquisition has been scheduled for 8:30 AM ET on Thursday, August 13, 2020. The phone can be accessed by way of webcast or by dialing +1 877-870-4263 (US/Canada) or +1 412-317-0790 and referencing Roper Technologies. Webcast data and conference phone resources will be produced offered in the Buyers section of Roper’s website (www.ropertech.com) prior to the commence of the connect with. The webcast can also be accessed specifically by applying the adhering to URL https://function.webcast. Telephonic replays will be out there for up to two weeks and can be accessed by dialing +1 412-317-0088 with entry code 10147337.
Use of Non-GAAP Monetary Info
Roper nutritional supplements its consolidated fiscal statements presented on a GAAP foundation with particular non-GAAP monetary info, which includes EBITDA, to supply traders with greater insight, enhance transparency and permit for a much more in depth being familiar with of the information and facts utilized by management in its money and operational conclusion-building. Roper defines EBITDA as earnings before interest, taxes, depreciation and amortization. Roper has not provided a reconciliation of the anticipated EBITDA contribution by Vertafore to the predicted net revenue contribution by Vertafore for 2021 simply because we are unable to quantify specific amounts, together with the truthful price affect on deferred earnings and related commission cost, that would be demanded to be provided in Vertafore’s contribution to internet cash flow without having unreasonable efforts. In addition, Roper believes these kinds of reconciliation would indicate a diploma of precision that would be baffling or misleading to buyers. The non-GAAP economical measure disclosed by Roper in this push release should not be regarded a substitute for, or exceptional to, economical actions prepared in accordance with GAAP, and the financial final results organized in accordance with GAAP and reconciliations from these benefits need to be diligently evaluated.
About Roper Systems
Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper operates businesses that structure and establish software package (each license and computer software-as-a-services) and engineered products and solutions and methods for a wide range of market conclusion markets. Added data about Roper is offered on the Company’s site at www.ropertech.com.
For 50 several years, Vertafore, the chief in modern day insurance coverage know-how, has constructed and supported exceptional Insurtech alternatives to hook up every point of the distribution channel. Vertafore’s agency administration, rankings, regulation, compliance, details and analytics, and connectivity goods streamline workflows, enhance performance and generate productivity for far more North American insurance plan pros than any other company – which includes far more than 20,000 organizations, over 1,000 carriers and 23 state governments. Via a continuous concentrate on operational excellence, growth of progressive alternatives, and alignment with important sector associates, Vertafore is foremost the way for customers of all measurements by offering success that make a variance. For a lot more info about Vertafore, check out www.vertafore.com.
The data supplied in this press release has forward-wanting statements within the meaning of the federal securities rules. These forward-hunting statements may well include things like, between other individuals, statements about working results, the results of our inside operating designs, the potential clients for recently acquired corporations to be integrated and lead to long run development, the timing and expected benefits of the Vertafore acquisition, our potential to satisfy all closing situations and productively consummate the Vertafore acquisition, and revenue and dollars stream expectations. Forward-on the lookout statements may be indicated by terms or phrases these kinds of as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “must,” “will,” “believes,” “intends” and very similar terms and phrases. These statements mirror management’s existing beliefs and are not ensures of potential efficiency. They include challenges and uncertainties that could lead to actual final results to differ materially from those contained in any forward-searching statement. These risks and uncertainties involve the results of the COVID-19 pandemic on our business, functions, money effects and liquidity, which include the period and magnitude of these types of results, which will depend on numerous evolving factors which we can not accurately forecast or assess, which includes: the period and scope of the pandemic the negative impact on global and regional marketplaces, economies and economic activity actions governments, firms and folks consider in reaction to the pandemic the effects of the pandemic, together with all of the foregoing, on our clients, suppliers, and business companions, and how promptly economies and demand from customers for our products and services recover following the pandemic subsides. This kind of hazards and uncertainties also include things like our capacity to determine and total acquisitions dependable with our company methods, integrate acquisitions that have been done, understand anticipated added benefits and synergies from, and regulate other risks linked with, the newly obtained corporations. We also face other general hazards, together with our capacity to comprehend price financial savings from our running initiatives, normal economic problems and the situations of the certain markets in which we operate, variations in overseas exchange prices, difficulties linked with exports, pitfalls affiliated with our worldwide operations, cybersecurity and knowledge privateness challenges, risks related to political instability, armed hostilities, incidents of terrorism, public overall health crisis (such as the COVID-19 pandemic) or natural disasters, elevated solution liability and insurance coverage costs, increased warranty exposure, potential competitiveness, variations in the source of, or price tag for, components and components, environmental compliance fees and liabilities, pitfalls and expense involved with asbestos similar litigation, potential generate-offs of our sizeable intangible property, and hazards related with getting governmental approvals and preserving regulatory compliance for new and existing solutions. Essential hazards might be discussed in current and subsequent filings with the SEC. You need to not place undue reliance on any forward-wanting statements. These statements converse only as of the day they are made, and we undertake no obligation to update publicly any of them in mild of new details or future occasions.