Roper enters into definitive agreement to acquire Sunquest Information Systems

Roper Industries, Inc. (NYSE: ROP) today announced that it has entered into a definitive agreement to acquire Sunquest Information Systems, Inc., the leading provider of diagnostic and laboratory software solutions to healthcare providers, in an all cash transaction valued at $1.415 billion, including $25 million in cash tax benefits. 

Headquartered in Tucson, Arizona, Sunquest provides a comprehensive suite of clinical and anatomic laboratory software solutions.  Sunquest's software solutions are used by more than 1,700 hospitals worldwide.  Hospital laboratories, which provide information that drives the majority of diagnostic decisions, rely on Sunquest software solutions to integrate vital data and improve workflow.  Sunquest also provides a growing suite of software solutions beyond the hospital laboratory with a focus on point-of-care patient safety and physician outreach.

Roper expects the acquisition of Sunquest to be immediately cash accretive and to generate $140 million or more of EBITDA in 2013, excluding the impact of fair value accounting of Sunquest's deferred revenue.  Sunquest is owned by a group of investors resulting from a 2010 recapitalization, led by Huntsman Gay Global Capital, in partnership with Vista Equity Partners, which has owned the company since 2007.

"Sunquest meets all of Roper's key acquisition criteria and is an ideal fit with both our Medical and Software platforms," said Brian Jellison, Roper's Chairman, President and CEO.  "The business is the market leader in software solutions for the critically important healthcare provider laboratory market.  We expect Sunquest to benefit in all economic environments from very favorable market forces – an aging population, expansion of anatomic pathology, and the need for reduced healthcare costs and improved quality of care.   Sunquest's software and application engineering capabilities deliver an outstanding return on investment for their customers.  The company has attractive cash return characteristics and generates significant recurring revenue through long-term customer relationships and very high retention rates."

Mr. Jellison continued, "Sunquest is led by an outstanding and proven leadership team that impressed us with their culture of execution and the results they have created.  We look forward to working with the Sunquest team to enhance the value of the business for the benefit of customers, employees and shareholders. The business will continue as Sunquest, marketing products and services under current brand names."

Richard Atkin, President and CEO of Sunquest, said, "We are excited to join the Roper family of high-performing diversified technology businesses.  Our customers will find that as part of Roper we will continue to provide the same excellent service and support with full continuity of personnel.  As we move forward, we will have the financial and strategic resources necessary to provide enhanced product offerings and expand into new areas. We are excited that Sunquest, our customers and our employees will have a bright and rewarding future with Roper."

Completion of the transaction, which is expected within 30 days, is subject to Hart-Scott-Rodino approval and customary closing conditions.  Barclays acted as financial advisor to Roper, and Jefferies & Company, Inc. acted as financial advisor to Sunquest.

SOURCE Roper Industries, Inc.