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Roper Technologies, Inc. (Sarasota, Fla.), a diversified technology company, has announced that it has reached a definitive agreement to acquire iPipeline (Exton, Pa.), a provider of software solutions to the life insurance and annuities industry, in an all-cash transaction valued at $1.625 billion. In the wake of the agreement, Larry Berran has been named CEO of iPipeline, and Tim Wallace has left that position to assume a strategic advisor role. iPipeline is currently an investment of private equity firm Thoma Bravo (Chicago/San Francisco). Credit Suisse (Zurich) served as exclusive financial advisor to iPipeline, and Kirkland & Ellis LLP (Chicago) and Lauletta Birnbaum LLP (Sewell, N.J.) served as legal advisors to iPipeline and Thoma Bravo.
iPipeline’s cloud-based applications provide workflow automation and seamless integration across a broad network of approximately 150 carriers, 1,350 distributors, and over 500,000 agents. The iPipeline network enables day-to-day connectivity essential to the design, delivery, and fulfillment of life insurance. The efficiencies resulting from iPipeline’s solutions help the network to reduce costs by improving cycle times and digitally enabling paper-based processes, while accelerating customer revenue by bringing new life insurance products and features to market faster.
“The iPipeline transaction demonstrates our disciplined capital deployment strategy by acquiring another high-quality business that will help grow and compound our cash flow,” comments Neil Hunn, Roper’s President and CEO. “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.”
The iPipeline management team, led by Berran, will continue to manage the business from its Exton, Pa., headquarters. Berran joined iPipeline in 2002 and has served as Chief Operating Officer and Chief Financial Officer since 2008. iPipeline’s name and brands are not expected to change as a result of the transaction, according to a Roper Technologies statement.
Long-Term Foundation for Further Development
“Roper’s acquisition of iPipeline is a great opportunity for our customers, employees, and partners,” comments Berran. “Roper provides iPipeline with a long-term foundation to further develop the life insurance and financial services industry’s leading platform and execute on our core purpose of helping our customers secure the financial futures of families.”
Former CEO Tim Wallace calls Roper’s acquisition of a great outcome for iPipeline and the entire ecosystem it supports. “I look forward to supporting Larry Berran, my business partner for the last 11 years and a driving force at iPipeline for 17 years, as he assumes this important role,” Wallace comments.
Roper anticipates funding the transaction using its revolving credit facility and cash on hand. The company expects iPipeline to contribute approximately $200 million of revenue and $70 million of after-tax free cash flow in 2020, excluding the impact of fair value accounting for deferred revenue and financing costs. Roper expects the acquisition to be immediately cash accretive and deliver high single digit organic revenue growth. The transaction is expected to close in the third quarter of 2019, subject to regulatory approval and customary closing conditions.