Earlier in March, rumors swirled that applied behavior analysis (ABA) software company CentralReach was on the market and seeking a $1 billion valuation. Those rumors have quickly turned into reality.
Roper Technologies Inc. (Nasdaq: ROP) announced Monday that it has reached a definitive agreement to buy CentralReach from Insight Partners for a net purchase price of about $1.65 billion. The deal includes $200 million in tax benefits, according to Roper.
“CentralReach is a fantastic business with clear niche market leadership, mission critical and high ROI solutions, a high recurring revenue mix, and outstanding customer retention, which leads to strong organic revenue growth and excellent cash conversion,” Neil Hunn, Roper’s President and CEO, said in the announcement. “This acquisition is another example of Roper identifying a business that provides greater value creation for our shareholders.”
Among its services, CentralReach offers practice management, revenue cycle management (RCM), clinical products, staff development and data analytics tools. The company’s core focus is on the autism market, though it also works in the broader intellectual and developmental disabilities space.
Since 2018, the Fort Lauderdale, Florida-based CentralReach has grown from 20,000 users to over 200,000, according to a press release from the company.
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Insight Partners – a global venture capital and private equity firm that invests in high-growth technology, software and internet businesses – invested in CentralReach in 2018.
“Through a combination of relentless execution and Insight’s support, we achieved exceptional organic growth over the past six years, which we supplemented through 14 strategic, roadmap-accelerating acquisitions,” Chris Sullens, CEO of CentralReach, said in the press release. “As we entered our next phase of growth, I knew it was essential to find a partner who, like Insight Partners, shares our values and vision for tech-enabled autism and IDD care.”
CentralReach will continue to operate independently moving forward, maintaining its existing leadership, team, products, brands and mission.
“With Roper’s long-term investment and commitment, CentralReach now has a permanent home where we can continue to scale, innovate, expand our impact, and continue to advance our mission in an even faster and more significant way than we have to date,” Sullens continued.
Headquartered in Sarasota, Florida, Roper Technologies is a diversified tech company that designs and develops software and engineered products for niche markets. In addition to health care, some of the niche markets it focuses on include the transportation, food and energy sectors.
Roper’s 2024 revenue was $7.04 billion, a 14% increase compared to 2023. Acquisitions accounted for a substantial portion of that year-over-year jump, with other recent purchases including Procare Solutions, an early-childhood education software company.
In its announcement, Roper noted that CentralReach is expected to contribute about $175 million of revenue and $75 million of EBITDA for the 12 months ending June 30, 2026.
The transaction is expected to close in April or May of this year, according to Roper.
