The insurance software developed by Vertafore is used by more than 20,000 agencies, 1,000 insurance carriers and 23 state governments in the US

Roper Technologies

Roper to acquire insurtech services provider Vertafore. (Credit: Pixabay/bertholdbrodersen.)

Technology company Roper Technologies has agreed to acquire Vertafore, a SaaS solutions provider for property & casualty (P&C) insurance industry, in a deal worth $5.35bn.

Roper will acquire Vertafore from Bain Capital Private Equity and Vista Equity Partners. The deal is expected to be closed in the third quarter of 2020, subject to regulatory approval and customary closing conditions.

Vertafore has been developing insurtech solutions that claim to connect every point in a distribution channel. Its cloud-based software helps in simplifying and automating complex property and casualty (P&C) insurance lifecycle.

It is claimed that more than 20,000 agencies, 1,000 insurance carriers and 23 state governments use the firm’s agency management, ratings, regulation, compliance, data and analytics and connectivity products streamline their processes, improve efficiency and to increase productivity.

Roper Technologies president and CEO Neil Hunn said: “Vertafore is a fantastic business characterised by clear leadership in its niche market, a strong management team, high customer retention, and a long track record of consistent revenue and cash flow growth.

“The acquisition of Vertafore is a great example of our disciplined capital deployment strategy which focuses on durable, long- term cash flow compounding. We look forward to welcoming Vertafore to the Roper family.”

Vertafore to retain its name, brands and present office after the acquisition

Upon closing of the deal Vertafore management team, led by CEO Amy Zupon, will continue working from its headquarters in Denver, Colorado, along with keeping its name, brands and office.

Zupon said: “In Roper, we have found a partner who shares both our vision and our values. Their acquisition of Vertafore is a validation of our strategy to provide innovative and critical solutions to our customers.

“Roper’s long-term mindset and proven model in selecting niche market leaders offer Vertafore a platform from which we can accelerate our commitment to helping our customers further modernise their operations. We are excited to have found a permanent home for our great company.”

The deal is expected to bring nearly $590m in revenue and $290m of earnings before interests, taxes, depreciation and amortisation (EBITDA) next year.