Roper Technologies Inc. is acquiring a Pennsylvania cloud-based software solutions firm for $1.6 billion in an-all cash transaction, the Sarasota company announced Thursday.
The acquisition of iPipeline, which specializes in software solutions for the life insurance and financial services industries, is expected to close in fiscal 2019’s third quarter.
Roper (NYSE: ROP) said in a statement that it anticipates funding the transaction through its revolving credit facility cash on hand. iPipeline is expected to contribute approximately $200 million of revenue and $70 million of after-tax free cash flow in 2020, excluding the impact of fair value accounting for deferred revenue and financing costs.
The transaction is expected to immediately deliver high single-digit organic revenue growth for Roper, according to a statement.
“The iPipeline transaction demonstrates our disciplined capital deployment strategy by acquiring another high-quality business that will help grow and compound our cash flow,” said Neil Hunn, Roper’s president and CEO, in a statement. “iPipeline is a terrific company with clear niche market leadership, a history of strong organic growth, high customer retention, and a management team that will thrive as part of Roper. We look forward to supporting iPipeline as they execute on numerous future growth opportunities while expanding the benefits enjoyed by their large and growing network of carriers, distributors and agents.”
The iPipeline management team, led by newly appointed CEO Larry Berran, will continue to manage the business from its Pennsylvania headquarters. Berran joined iPipeline in 2002 and has served as chief operating officer and chief financial officer since 2008.
iPipeline’s name and brands are not expected to change following the acquisition.
The company has a suite of SaaS-based applications that provides workflow automation and seamless integration across a network of approximately 150 carriers, 1,350 distributors and over 500,000 agents.
Roper Technologies is one of the largest public companies in the Tampa Bay area. It operates businesses that design and develop software and engineered products and solutions for a variety of niche end markets.
