Roper Technologies to acquire Procare Solutions for $1.75B

Roper Technologies has reached a definitive agreement to acquire Procare Solutions for a net purchase price of approximately $1.75 billion, including a $110 million tax benefit resulting from the transaction. The net purchase price represents approximately 18 times Procare’s estimated EBITDA for the twelve months ending March 31, 2025. Procare is a leading provider of cloud-based software for the management of early childhood education centers. Procare’s purpose-built solutions serve as the system-of-record and workflow software for childcare centers, managing all aspects of day-to-day operations, including parent engagement, staff and teacher scheduling, classroom management, tuition billing, and payment processing. More than 37,000 childcare organizations utilize Procare’s tools to digitally transform their operations and maintain strong relationships with their families and staff. Procare’s management team will continue to lead the business from its Denver, Colorado headquarters. Procare’s name, brands, and office locations will not change as a result of the transaction. Roper anticipates funding the transaction using its revolving credit facility. Procare is expected to contribute approximately $260 million of revenue and $95 million of EBITDA for the twelve months ending March 31, 2025, and will be reported in Roper’s Application Software segment. The transaction is expected to be accretive to Roper’s 2024 free cash flow and 2025 adjusted DEPS. Roper expects Procare to deliver long-term mid-teens organic revenue growth. The transaction is expected to close later this quarter, subject to regulatory approval and customary closing conditions.