Roper Technologies has agreed to acquire healthcare technology firm CentralReach from Insight Partners for approximately $1.65 billion. This acquisition follows Roper's purchases of two cloud-based software providers last year and is seen as a strategic move to bolster its business amidst sluggish enterprise spending that is delaying contract renewals.
Roper CEO Neil Hunn emphasized that CentralReach fulfills the company's long-standing acquisition criteria, presenting a structurally faster organic growth profile and the potential to expand margins under Roper’s long-term ownership. He noted that CentralReach holds a clear leadership position in its niche market and features a high recurring revenue mix.
Roper specializes in creating software and tech-enabled products for sectors including healthcare, law, and data analytics. CentralReach is anticipated to contribute about $175 million to revenue and $75 million in EBITDA for the 12 months ending June 30, 2026. CentralReach offers a platform that aids therapists serving children and adults diagnosed with autism spectrum disorder and related intellectual and developmental disabilities.
In 2024, Roper also acquired Procare Solutions and Transact Campus, both cloud-based software providers. Procare focuses on software for managing early childhood education centers, while Transact Campus caters to higher education institutions.
Earlier this year, Roper projected annual revenue growth of over 10%, surpassing analysts' average estimate of 9.6%. The transaction is expected to close in April or May 2025. Following this news, Roper's shares rose by 1.1% in early trading.