Roper To Snap Frontline Education From Thoma Bravo For $3.7B

Roper Technologies, Inc ROP agreed to acquire Frontline Education from Thoma Bravo in an all-cash transaction valued at $3.725 billion.
Including a tax benefit, the net purchase price is $3.375 billion, representing 19 times Frontline's estimated 2023 EBITDA.
Frontline's cloud-based software provides a connected platform of administrative solutions that are purpose-built for K-12 education, including human capital management, business operations management, student management, and analytics.
Frontline will likely contribute $370 million of revenue and $175 million of EBITDA in 2023.
Roper expects Frontline's annual unlevered free cash flow to be 100% of EBITDA.
The transaction will likely close in the fourth quarter.
Roper looks to fund the transaction using its cash on hand and revolving credit facility.
Roper held $2.88 billion in cash and equivalents as of June 30.
Earlier, Roper agreed to sell a majority stake in its industrial businesses to Clayton, Dubilier & Rice, LLC (CD&R) affiliates for $2.6 billion while retaining a 49% minority interest in a new standalone entity.
Price Action: ROP shares traded higher by 1.06% at $413.51 on the last check Tuesday.