Roper Technologies, Inc. ( ROP ) shares are trading higher on Monday after the company disclosed a deal to acquire CentralReach from Insight Partners for a net purchase price of around $1.65 billion.

The acquisition price factors in a $200 million tax benefit.

CentralReach offers cloud-based software designed to streamline the workflow and administration of Applied Behavior Analysis (ABA) therapy.

The platform also features AI-powered modules to enhance efficiency and care outcomes.

Roper plans to integrate CentralReach into its Application Software segment, with anticipated sustainable 20%+ organic revenue and EBITDA growth.

Notably, CentralReach is projected to generate around $175 million in revenue and $75 million in EBITDA for the 12 months ending June 30, 2026.

The acquisition, expected to close by April/May 2025, is subject to regulatory approval and customary conditions and will be financed through Roper’s revolving credit facility.

“This acquisition is another example of Roper identifying a business that provides greater value creation for our shareholders,” said Neil Hunn, Roper’s president and CEO.

”CentralReach meets each of our long-standing acquisition criteria, while also having a structurally faster organic growth profile and the ability to expand margins under Roper’s long-term ownership.”

As of FY24, the company had cash and equivalents of $188.2 million and net inventories worth $120.8 million.

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

Price Action: ROP shares are up 0.42% at $574.58 at the last check Monday.

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