Roper (ROP) to Boost Portfolio With Transact Campus Buyout

Acquisition Overview - Roper Technologies, Inc. has acquired Transact Campus, Inc. for a total transaction value of $1.5 billion, which includes a $100 million tax benefit [1] - The acquisition will be financed through Roper's existing cash and revolving credit facility [1] Company Profile - Transact, based in Scottsdale, AZ, provides app-based campus transaction processing solutions, enabling cashless transactions for students both on and off campus [2] - The company also offers services such as security management, college store management, automated attendance monitoring, electronic payments, and tuition payment plans [2] Strategic Rationale - The acquisition aligns with Roper's strategy to expand its market share and customer base through targeted acquisitions [3] - Integrating Transact's expertise in campus technology and payment solutions is expected to enhance customer retention and improve cash conversion [3] Integration Plans - Transact will be incorporated into Roper's CBORD business, which offers foodservice, nutrition, access and security, and campus commerce solutions [4] - The combined entity will operate under both the Transact and CBORD brand names [4] Financial Expectations - The acquisition is subject to regulatory approvals and is expected to close in the immediate future [5] - Transact is projected to generate revenues of approximately $325 million and EBITDA of $105 million in 2025 [5] - Roper anticipates that Transact will achieve sustained high single-digit organic revenue growth over the long term [5] Market Performance - Roper Technologies currently holds a Zacks Rank of 3 (Hold) and has seen a stock price increase of 12.8% over the past year, compared to the industry's 18.3% growth [6] - The company is experiencing rising expenses due to supply-chain issues, which are impacting profitability [6]