Roper Technologies, Inc. (NASDAQ:ROP) has agreed to acquire Transact Campus, Inc. for a net purchase price of $1.5 billion, which includes a $100 million tax benefit from the transaction.

The net purchase price is about 14 times the projected 2025 EBITDA, the company said on Thursday.

Transact provides campus technology and payment solutions and offers services like campus ID software, tuition payment processing, and point-of-sale systems.

The company will merge with Roper's CBORD business, which provides similar solutions to healthcare, education, and K-12 institutions.

The transaction is set to close in this quarter, with Roper funding the acquisition through its cash reserves and revolving credit facility.

As of June-end, Roper's cash and equivalents stood at $251.5 million.

Synergies: Transact is projected to generate around $325 million in revenue and $105 million in EBITDA in 2025, with cost synergies boosting these figures.

Roper anticipates long-term, high, single-digit organic revenue growth from Transact.

Neil Hunn, Roper Technologies' President and CEO, said, "Transact is an excellent business that meets all of our acquisition criteria, including mission critical solutions, strong customer retention, and excellent cash conversion."

"Bringing together Transact and CBORD and leveraging each business's unique core competencies will expand and accelerate the innovation they will bring to their customers."

The combined business will use both the Transact and CBORD brand names and be led by Transact's CEO, Nancy Langer, with CBORD's CEO, Dan Park, serving as Chief Operating Officer.

Investors can gain exposure to the stock via Invesco Global Water ETF (NASDAQ:PIO) and Invesco Water Resources ETF (NASDAQ:PHO).

Price Action: ROP shares closed higher by 3.52% at $546.57 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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