Roper (ROP) Acquires Syntellis Performance Solutions for $1.25B
Roper Technologies ROP recently acquired cloud-based performance management and data solutions provider, Syntellis Performance Solutions, for $1.25 billion. The transaction value includes a $135 million tax benefit. ROP funded the transaction using cash on hand and revolving credit facility.
The acquired entity will be integrated into Roper’s Strata Decision Technology business, which provides healthcare financial planning, decision support, and performance management solutions.
Together the two companies will improve innovation and deliver greater value to their customer base. Syntellis is expected to contribute approximately $185 million and $85 million to Roper’s revenues and EBITDA in 2024, including planned cost synergies.
Roper Technologies, Inc. Price
Roper Technologies, Inc. price | Roper Technologies, Inc. Quote
The combined businesses of Strata and Syntellis will be led by the former’s CEO, John Martino, under the name Strata Decision Technology.
Roper’s efforts to expand operations through successive acquisitions hold promise. In October 2022, the company acquired Frontline Education for $3.7 billion. The acquisition builds on Roper’s Horizon software business (which it acquired in 2008), expanding its presence in the K-12 education market. The acquisition is expected to contribute approximately $370 million to Roper’s revenues and $175 million to its EBITDA in 2023.
In January 2022, ROP acquired American LegalNet, which strengthened its Aderant business to provide comprehensive software solutions to its customers in the legal industry. Acquisitions boosted sales by 8% in the second quarter of 2023.
Zacks Rank & Other Key Picks
Roper presently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks within the broader Computer and Technology sector are as follows:
Vertiv Holdings Co VRT sports a Zacks Rank #1 (Strong Buy). The company pulled off a trailing four-quarter earnings surprise of 25.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
Vertiv has an estimated earnings growth rate of 201.9% for the current year. Shares of the company have surged more than 100% in a year.
Wix.com Ltd. WIX flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 319.3%, on average.
Wix.com has an estimated earnings growth rate of 1,476.5% for the current year. Shares of the company have rallied 32.3% in a year.
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