(Reuters) – Roper Technologies Inc. said on Thursday it would buy Vertafore Inc., a private insurance company owner, for about $ 5.35 billion in what would be its largest takeover deal to date.
Reuters had previously reported that the company competed with private equity firms in an auction for Vertafore, which is owned by the buyout companies Vista Equity Partners and Bain Capital.
Acquiring Vertafore would be in line with Roper's strategy of capturing software companies in niche markets with strong recurring revenue.
It also signals that the highly acquiring company has not given up its expansion plans in the wake of the COVID-19 pandemic, which has prompted some of its customers to review their spending plans. [1
Insurance software companies have increasingly sought products that give customers direct access to their information and helps insurance providers reduce costs.
Vertafore, based in Denver, is one of the leading suppliers of software to the real estate and non-life insurance industry. Vista and Bain acquired the company in 2016 from the private equity company TPG for $ 2.7 billion including liabilities.
Roper expects the acquisition to close in the third quarter and be cash-strapped immediately.
J. P. Morgan and Wells Fargo Securities acted as financial advisors to Roper.