11:35 AM EDT, 08/15/2024 (MT Newswires) -- Roper Technologies ( ROP ) agreed to acquire Transact Campus, saying it will tie the payments and commerce company's systems into a unit that provides software for senior living, educational, business and healthcare sites.

Roper pegged the net purchase price at $1.5 billion, including a $100 million tax benefit, while Transact put the deal value at $1.6 billion in a separate statement. Transact is being sold by its parent company, Reverence Capital Partners.

Roper's shares rose 2.7% in Thursday trade, on course for a third straight day of gains.

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

Transact has more than 12 million users and provides services like campus IDs and tuition payment systems. It's expected to add $325 million in revenue next year and $105 million of earnings before interest, tax, depreciation and amortization.

"Roper expects Transact to deliver long-term high single-digit organic revenue growth," the company said.

Roper said last month that second-quarter organic revenue rose 4% year over year. At the time, Hunn said the company had a "robust pipeline of attractive acquisition opportunities." In January, Roper agreed to acquire Procare Solutions, a maker of software for early childhood education centers.

Transact CEO Nancy Langer will become head of Roper's CBORD brand, which will include Transact after the deal is completed. Dan Park, the CEO of CBORD, will become chief operating officer. Roper plans to fund the purchase with cash on hand and its revolving credit facility, with the deal set to close "in the immediate future," the company said.

Price: 540.95, Change: +12.95, Percent Change: +2.45