Roper Technologies to acquire Insurance Tech firm iPipeline

Roper Technologies announced the acquisition of cloud-based software solutions company, iPipeline. The all-cash transaction stood at $1.62 Billion.

iPipeline is a provider of cloud software solutions for the life insurance and financial services industry. The company also provides workflow automation and seamless integration across a broad network of 1350 distributors, 150 carriers, and more than 500000 agents.

The iPipeline management team, which is led by the newly appointed CEO Larry Berran, will continue to work in the business from its Exton, Pennsylvania headquarters. Berran joined the iPipeline in the year 2002 and has served as the Chief Operating Officer and Chief Financial Officer since 2008. The name and brands of the iPipeline are not expected to change as a result of the sanctions, the announcement notes.

Executive Opinion

Neil Hunn, Roper’s President, and CEO said, "The iPipeline transaction demonstrates our disciplined capital deployment strategy by acquiring another high-quality business that will help grow and compound our cash flow. iPipeline is a terrific company with clear niche market leadership, a history of strong organic growth, high customer retention, and a management team that will thrive as part of Roper. We look forward to supporting iPipeline as they execute on numerous future growth opportunities while expanding the benefits enjoyed by their large and growing network of carriers, distributors, and agents."

More about the Acquisition Financing and Financial Outlook

Roper anticipates funding the transaction with the help of its revolving credit facility and cash on hand. iPipeline is expected to contribute approx. $200 Million of revenue and $70 million of after tax-free cash flow in the year 2020, which excludes the impact of fair value accounting for deferred revenue and financing costs.

Thoma Bravo, LLC, a leading private equity investment firm, previously owned iPipeline

The transactions between both the companies are expected to close in the third quarter of 2019, subject to the regulatory approvals.