Roper Technologies, Inc. (NYSE: ROP), a leading
diversified technology company, today announced that it has reached
a definitive agreement to acquire iPipeline in an all-cash
transaction valued at $1.625 billion.
iPipeline’s cloud-based software delivers
award-winning solutions for the life insurance and annuity
industries. iPipeline’s suite of SaaS-based applications provides
workflow automation and seamless integration across a broad network
of approximately 150 carriers, 1,350 distributors, and over 500,000
agents. The iPipeline network enables day-to-day connectivity
essential to the design, delivery, and fulfillment of life
insurance. iPipeline solutions help the network to reduce costs by
improving cycle times and digitally enabling paper-based processes,
while accelerating customer revenue by bringing new life insurance
products and features to market faster.
“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. “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 Exton, Pennsylvania headquarters. Larry 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 as a result of the transaction.
Acquisition Financing and Financial
Outlook
Roper anticipates funding the transaction using
its revolving credit facility and 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. Roper expects the acquisition to be immediately cash
accretive and deliver high single digit organic revenue growth.
The transaction is expected to close in the
third quarter, subject to regulatory approval and customary closing
conditions.
About Roper
Technologies
Roper Technologies is a constituent of the
S&P 500, Fortune 1000, and the Russell 1000 indices. Roper
operates businesses that design and develop software (both license
and software-as-a-service) and engineered products and solutions
for a variety of niche end markets. Additional information about
Roper is available on the Company’s website at
www.ropertech.com
About iPipeline
iPipeline is a leading provider of cloud-based
software solutions for the life insurance and financial services
industries. Through its SSG Digital, end-to-end platform, iPipeline
accelerates and simplifies sales, compliance, operations, and
support. iPipeline provides process automation and seamless
integration between every participant in its ecosystem including
carriers, agents, general agencies, advisors, broker-dealers, RIAs,
banks, securities/mutual fund firms, and consumers on a global
basis. iPipeline’s innovative solutions include pre-sales support,
new business and underwriting, policy administration, point-of-sale
execution of applications, post-sale support, data analysis,
reporting, user-driven configuration, consumer delivery and
self-service, and agency and firm management.
iPipeline’s platform is used by approximately
150 insurance carriers, 1,350 distributors and financial
institutions, and their agents and licensed advisors in a
cloud-based environment. With headquarters in Exton, Pennsylvania,
iPipeline has locations in Bromley (UK), Burlington (Canada),
Cheltenham (UK), Dallas, Fort Lauderdale, Huntersville (NC),
Ontario (CA), Philadelphia, Pleasanton (CA), and Salt Lake City.
Visit www.ipipeline.com.
The information provided in this press release
contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements may
include, among others, statements regarding operating results, the
success of our internal operating plans, and the prospects for
newly acquired businesses to be integrated and contribute to future
growth, profit and cash flow expectations. Forward-looking
statements may be indicated by words or phrases such as
"anticipate," "estimate," "plans," "expects," "projects," "should,"
"will," "believes," "intends" and similar words and phrases. These
statements reflect management's current beliefs and are not
guarantees of future performance. They involve risks and
uncertainties that could cause actual results to differ materially
from those contained in any forward-looking statement. Such risks
and uncertainties include our ability to identify and complete
acquisitions consistent with our business strategies, integrate
acquisitions that have been completed, realize expected benefits
and synergies from, and manage other risks associated with, the
newly acquired businesses. We also face other general risks,
including our ability to realize cost savings from our operating
initiatives, general economic conditions and the conditions of the
specific markets in which we operate, changes in foreign exchange
rates, difficulties associated with exports, risks associated with
our international operations, increased product liability and
insurance costs, increased warranty exposure, future competition,
changes in the supply of, or price for, parts and components,
environmental compliance costs and liabilities, risks and cost
associated with asbestos related litigation, potential write-offs
of our substantial intangible assets, and risks associated with
obtaining governmental approvals and maintaining regulatory
compliance for new and existing products. Important risks may be
discussed in current and subsequent filings with the SEC. You
should not place undue reliance on any forward-looking statements.
These statements speak only as of the date they are made, and we
undertake no obligation to update publicly any of them in light of
new information or future events.
The Company has presented forward-looking
statements regarding free cash flow. This non-GAAP financial
measure is derived by excluding certain amounts, expenses or income
from the corresponding financial measures determined in accordance
with GAAP. The determination of the amounts that are excluded from
this non-GAAP financial measure is a matter of management judgment
and depends upon, among other factors, the nature of the underlying
expense or income amounts recognized in a given period. We are
unable to present a quantitative reconciliation of forward-looking
free cash flow to its most directly comparable forward-looking GAAP
financial measure because such information is not available and
management cannot reliably predict all of the necessary components
of such GAAP measures without unreasonable effort or expense. In
addition, we believe such reconciliations would imply a degree of
precision that would be confusing or misleading to investors. This
non-GAAP financial measure is a preliminary estimate and is subject
to risks and uncertainties, including, among others, changes in
connection with quarter end and year-end adjustments. Any variation
between the Company’s actual results and preliminary financial data
set forth above may be material.
Contact Information: Investor
Relations941-556-2601 investor-relations@ropertech.com
Roper Technologies (NYSE:ROP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Roper Technologies (NYSE:ROP)
Historical Stock Chart
From Apr 2023 to Apr 2024