Deltek announced on December 6th, that it is being acquired for $2.8 Billion. Private equity firm Thoma Bravo which purchased Deltek in 2012 has now sold the company to Roper Technologies (NYSE:ROP). Deltek will still operate as separate company within Roper Technologies and maintain it’s brand and product names, strategy and global team. In addition, Deltek’s 2,400 staff and office locations are not expected to change as a result of this acquisition.
Mike Corkery President and CEO of Deltek commented on the acquisition saying “Roper’s acquisition of Deltek is a great outcome for our employees, customers and partners. Roper provides Deltek with a permanent home and a long-term foundation that we can use to further solidify our position as the worldwide leader in solutions for project-based businesses. Roper’s commitment to aggressively investing in our products and employees means we will continue to deliver the solutions and expertise that drives significant benefits for our customers.”
Roper Technologies has a solid track record of acquiring well-run tech companies in global niche markets that have growth potential. Roper sees Deltek fitting into it’s long-term strategy with its track record of revenue and profitability growth. Deltek also commands a dominant position within its core markets.
Deltek meets Roper Technologies Acquisition Criteria which it typically uses when buying companies:
- Niche Market Leaders
- Deep Domain Expertise
- Multiple Growth Opportunities
- Excellent Management Team
- High Recurring Revenue
- Strong Cash Flow Characteristics
- Asset Light (Negative Working Capital)
Deltek’s projected 2017 contributions to Roper Technologies are $535M revenue and $200M EBITA. This acquisition is being financed by Cash on Hand, Borrowings from Existing Credit Facility and New Debt.
“We are excited to acquire Deltek,” said Brian Jellison, Roper’s Chairman, President and CEO. “Deltek offers everything we look for in a Roper company – a specialized focus, innovative products, loyal customers, and a talented team. We look forward to partnering with Mike and the management team to take all that is great about Deltek and accelerate its essential strengths moving forward. As part of the Roper family, Deltek is better-positioned than ever to deliver innovative solutions to the project-based industries that it serves.”
The acquisition is expected to close by the end of 2016.