Roper Technologies Inc., an American software company, is reportedly in talks to purchase insurance software vendor Vertafore Inc. for around USD 5.5 billion.
Sources cite that deal would be the biggest acquisition to date for Roper. The deal highlights the company’s ambition to expand its business even during the COVID-19 pandemic, which has seriously impacted its few customers and prompted them to review their spending plans.
Sources confirm that several private equity firms are also in talks to acquire Vertafore, which is owned by Bain Capital and Vista Equity Partners. If the negotiations are successful, the purchase could be announced this month.
The reliable sources requested anonymity as the negotiations are fully confidential. Roper declined to request for comment. Vista Equity, Bain capital, and Vertafore didn’t directly respond to requests for comment.
Florida-based Roper has grown significantly through a series of acquisitions and offers automated and software solutions to several sectors including transportation, food, healthcare, energy, and education. The company has a market valuation of around USD 46.17 billion.
Insurance software companies have been witnessing a surging demand for that provide customers with instant access to their information and help insurance providers to cut costs. Roper’s move to acquire Vertafore is in line with the company’s strategy of snapping up software firms in niche markets with growing recurring revenues.
For the record, Denver-based Vertafore in one of the leading software providers companies to insurance and property and casualty industry. Bain and Vista purchased the firm in 2016 from private equity company TPG for USD 2.7 billion, including debt.
During the pandemic, it seems as though the insurance sector may witness a flurry of deals. In the previous week, Sirius International Insurance Group and Third Point Reinsurance Ltd announced a merger that would create a USD 3.3 billion global insurance entity.