Diversified industrial company Roper Industries, Inc. (ROP) said Wednesday that it has agreed to buy privately-held health care services provider Managed Health Care Associates, Inc. or MHA in an all-cash deal valued at $1 billion. Roper expects the acquisition to bolster its existing medical business.
Florham Park, New Jersey-based MHA provides services, software and analytics to support the needs of alternate site health care providers who deliver services outside of an acute care hospital setting.
MHA provides expertise in group purchasing, managed care and payer contracting, reimbursement management, specialty pharmacy solutions, pharmaceutical data analytics, consultant pharmacy software and legislative advocacy. MHA was founded in 1989.
Roper expects the acquisition of MHA to be immediately cash accretive and to generate $95 million of EBITDA or earnings before interest, taxes, depreciation and amortization over the first twelve months of ownership, excluding the impact of acquisition-related fair value accounting. The companies expect the transaction to be completed within 30 days.
Brian Jellison, Roper's Chairman, President and CEO said, "MHA meets all of Roper's key acquisition criteria and is an excellent addition to our Medical platform. The business provides the leading network of solutions to the alternate site healthcare market. MHA's powerful technology tools and proven customer-service model continue to drive growth in their multiple niches."
In late July 2012, Roper agreed to acquire diagnostic and laboratory software provider Sunquest Information Systems, Inc., in an all-cash deal valued at $1.415 billion. Tucson, Arizona-based Sunquest provides a comprehensive suite of clinical and anatomic laboratory software solutions.
ROP closed Wednesday's trading at $120.54, down $0.72 or 0.59 percent on a volume of 671,322 shares. However, in after-hours, the stock gained $0.86 or 0.71 percent to $121.40.
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