SARASOTA, Fla., Aug. 30, 2022 (GLOBE NEWSWIRE) — Roper Technologies, Inc. (NYSE: ROP) today announced that it has reached a definitive agreement to acquire Frontline Education in an all-cash transaction valued at approximately $3.725 billion. Including a tax benefit resulting from the transaction, the net purchase price is approximately $3.375 billion, representing approximately 19 times Frontline’s estimated 2023 EBITDA.
Frontline’s cloud-based software provides a connected platform of administrative solutions that are purpose-built for K-12 education, including human capital management, business operations management, student management, and analytics. More than 10,000 educational organizations, representing millions of educators, administrators, and support personnel, utilize Frontline’s tools to automate their operations and gain insights that enable improved efficiency and productivity.
“Frontline is a terrific business with clear niche market leadership, a proven track record of strong organic and inorganic growth, excellent cash conversion, and an outstanding management team that will thrive as part of Roper,” said Neil Hunn, Roper’s President and CEO. “The acquisition of Frontline demonstrates Roper’s disciplined capital deployment strategy that focuses on identifying high-quality, market-leading technology businesses that will enhance Roper’s cash flow compounding. We are excited to welcome Frontline to the Roper family.”
Frontline’s management team will continue to lead the business from its Malvern, Pennsylvania headquarters. Frontline’s name, brands, and office locations will not change as a result of the transaction.
Acquisition Financing and Financial Outlook
Roper anticipates funding the transaction using its cash on hand and revolving credit facility.
Frontline is expected to contribute approximately $370 million of revenue and $175 million of EBITDA in 2023.
Roper expects Frontline’s annual unlevered free cash flow to be approximately 100% of EBITDA.
The transaction is expected to close in the fourth quarter, subject to regulatory approval and customary closing conditions.
About Roper Technologies
Roper Technologies is a constituent of the S&P 500 and Fortune 500. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess free cash flow toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.
About Frontline
Frontline Education is a leading provider of school administration software, connecting solutions for human capital management, student and special programs, and business operations with powerful analytics to empower educators. Frontline partners with school systems to deliver tools, data and insights that support greater efficiency and productivity, enabling school leaders to spend more time and resources executing strategies that drive educator effectiveness, student success and district excellence.
Frontline’s broad portfolio includes solutions for proactive recruiting and hiring, absence and time management, professional growth, student information systems, special education, special programs, Medicaid reimbursement, school health management, inventory control and asset management, payroll, benefits and financial management, and analytics solutions that help district leaders tap into their data to make more informed decisions for the benefit of their students and communities. Over 10,000 clients representing millions of educators, administrators and support personnel have partnered with Frontline Education in their efforts to develop the next generation of learners.
