Roper Technologies in Talks to Buy Vertafore for $5.5 Billion, Reuters Reports

August 9, 2020

Roper Technologies Inc. is in talks to acquire Vertafore for close to $5.5 billion, Reuters reported, citing people familiar with the matter who weren’t identified.

The acquisition would be the biggest ever for the Sarasota, Florida-based maker of industrial equipment, Reuters said, and has been competing with private equity firms for the deal. An agreement could be announced as early as August if it’s successful, the news agency said.

Vertafore is owned by Vista Equity Partners and Bain Capital, Reuters said. The purchase would be in line with Roper’s strategy of buying software companies in niche markets with recurring revenues, it said, adding that Vertafore’s focused on the property and casualty insurance industry. Vista and Bain bought Vertafore in 2016 from TPG for $2.7 billion, including debt, Reuters said.

The deal comes as Roper shares surged to a record on Friday. The stock climbed 25% this year, valuing it at 45 times earnings, compared with 26 times for the Standard and Poor’s 500 Industrials Index.

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