Roper Industries to acquire Managed Health Care Associates for $1 bn
18 April 2013
Diversified US manufacturer, Roper Industries Inc today said it would buy Managed Health Care Associates Inc (MHA), for $1 billion in cash, in order to expand its presence in the healthcare market.
Based in New Jersey, MHA provides services and technologies to support the diverse and complex needs of alternate site health care providers who deliver services outside of an acute care hospital setting.
MHA has the leading market position serving multiple niche markets including long-term care pharmacies, assisted living facilities, long-term care facilities, infusion and specialty pharmacies and other alternate site providers. MHA's services, software and analytics enable its customers to manage reimbursement, increase market access, reduce business complexity and purchase more efficiently.
Roper, which produces engineered products for global niche markets, expects the acquisition of MHA to be immediately cash accretive and to generate $95 million of EBITDA in the first year after the acquisition.
Roper is a diversified growth company with annual revenues of $2.7 billion. It provides engineered products and solutions for global niche markets, including water, energy, transportation, education, medical, and SaaS-based information networks.
''MHA meets all of Roper's key acquisition criteria and is an excellent addition to our medical platform,'' said Brian Jellison, Roper's chairman, president and CEO.
''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. The company has attractive cash return characteristics and generates substantial recurring revenue through long-term customer relationships and very high retention rates,'' he added.