Roper Industries Inc. (ROP), a maker of products from medical imaging to refrigeration valves, agreed to purchase Managed Health Care Associates Inc. for $1 billion in cash, in its second large medical transaction in less than a year.
The deal for closely Managed Health Care Associates, known as MHA, will add $95 million in earnings before interest, taxes, depreciation and amortization, a measure know as Ebitda, during the first year of ownership, according to a statement from Sarasota, Florida-based Roper. The transaction is expected to be complete within 30 days, the company said.
The purchase of Florham Park, New Jersey-based MHA, which supplies technology services to alternative health-care providers such as pharmacies and assisted-living facilities, follows the $1.42 billion acquisition of Sunquest Information Systems Inc., which was completed in August. Sunquest provides laboratory software used by 1,700 hospitals.
MHA “is an excellent addition to our medical platform,” Brian Jellison, Roper’s chairman and chief executive officer, said in the statement. “The company has attractive cash return characteristics and generates substantial recurring revenue.”
Roper didn’t say how it plans to finance the purchase. At the end of December, the company had cash and near cash items of $370.6 million, according to data compiled by Bloomberg.
Roper rose less than 1 percent to $121.40 at 5:07 p.m. in extended trading in New York, after closing at $120.54.
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