Roper Technologies, a prominent player in the software and technology sector, has announced its decision to acquire CentralReach, a leading provider of software solutions for Applied Behavior Analysis (ABA) therapy, for approximately $1.65 billion. This strategic move is expected to enhance Roper’s offerings in the healthcare technology space, particularly in services for individuals with autism spectrum disorder (ASD) and related developmental disabilities.
Key Takeaways
- Roper Technologies is acquiring CentralReach for $1.65 billion, including a $200 million tax benefit.
- CentralReach serves over 200,000 professionals in the ABA therapy sector.
- The acquisition is projected to contribute $175 million in revenue and $75 million in EBITDA for the fiscal year ending June 30, 2026.
- The deal is expected to close in April or May 2025, pending regulatory approval.
Overview of CentralReach
CentralReach is recognized for its cloud-native software that streamlines the workflow and administration of ABA therapy. The platform is essential for therapy providers, offering tools for:
- Client setup
- Practice management
- Claims processing
- Care scheduling
- Clinical data collection
- Service delivery
With a focus on enhancing care for individuals with ASD and related intellectual and developmental disabilities, CentralReach has established itself as a critical resource for over 200,000 professionals globally.
Roper Technologies’ Strategic Vision
Roper Technologies, known for its disciplined approach to acquisitions, sees CentralReach as a perfect fit for its portfolio. Neil Hunn, Roper’s President and CEO, emphasized that CentralReach meets all of Roper’s acquisition criteria, including:
- Strong market leadership in a niche sector
- High recurring revenue mix
- Potential for significant organic growth
- Ability to expand margins under Roper’s management
This acquisition aligns with Roper’s strategy to invest in high-quality businesses that promise sustainable growth and value creation for shareholders.
Financial Outlook and Impact
The financial implications of the acquisition are promising. CentralReach is expected to:
- Generate approximately $175 million in revenue
- Contribute around $75 million in EBITDA for the twelve months ending June 30, 2026
Roper anticipates that CentralReach will achieve organic revenue and EBITDA growth of over 20%, further solidifying its position in the healthcare technology market.
Conclusion
The acquisition of CentralReach marks a significant step for Roper Technologies as it continues to expand its footprint in the healthcare sector. With the expected closing of the deal in the coming months, Roper is poised to enhance its service offerings and drive growth in a market that is increasingly focused on technology-driven solutions for healthcare providers. This strategic move not only strengthens Roper’s portfolio but also underscores its commitment to improving care for individuals with autism and related disabilities.
Sources
- Roper Technologies to acquire CentralReach, GlobeNewswire.
- Roper Technologies to buy healthcare tech firm CentralReach for $1.65 billion, Reuters.
Peyman Khosravani is a seasoned expert in blockchain, digital transformation, and emerging technologies, with a strong focus on innovation in finance, business, and marketing. With a robust background in blockchain and decentralized finance (DeFi), Peyman has successfully guided global organizations in refining digital strategies and optimizing data-driven decision-making. His work emphasizes leveraging technology for societal impact, focusing on fairness, justice, and transparency. A passionate advocate for the transformative power of digital tools, Peyman’s expertise spans across helping startups and established businesses navigate digital landscapes, drive growth, and stay ahead of industry trends. His insights into analytics and communication empower companies to effectively connect with customers and harness data to fuel their success in an ever-evolving digital world.
