Roper Technologies In Talks To Buy Insurance Software Firm Vertafore For $5.5B: Report

Software company Roper Technologies Inc. ROP is in negotiations to purchase Vertafore Inc for nearly $5.5 billion, Reuters reported Sunday.

What Happened

The Vista Equity Partners- and Bain Capital-owned Vertafore, a software vendor to the insurance industry, would be the largest acquisition to date for Roper, according to Reuters.

If the talks are successful, the purchase could be announced this month, people familiar with the matter told the newswire.

Vista and Bain purchased Vertafore for $2.7 billion, including debt, in 2016 from private equity firm TPG. 

Why It Matters

Roper has grown through a series of acquisitions and provides software and automated solutions to healthcare, transportation, and energy businesses, Reuters noted. It has a market valuation of $46.17 billion.

The purchase of Vertafore would add yet another niche company to its portfolio with a strong history of earning revenue.

The insurance sector is expected to see a flurry of deals, as the pandemic pushes businesses to shed non-core operations or shop for assets to scale up, according to the Financial Times.

Last Week, fund manager Daniel Loeb’s, Third Point Reinsurance Ltd TPRE and Sirius International Insurance Group, Ltd TPRE announced a merger that would create a $3.3 billion global insurance entity. 

Price Action

Roper shares closed 0.9% higher at $440.90 on Friday.