In a significant development earlier in March, rumors began circulating that CentralReach, a renowned applied behavior analysis (ABA) software company, was up for sale with a target valuation of $1 billion. These rumors have now materialized into a concrete reality.
Roper Technologies Inc. (Nasdaq: ROP) made a groundbreaking announcement on Monday, confirming that they have entered into a definitive agreement to acquire CentralReach from Insight Partners for a net purchase price of approximately $1.65 billion, inclusive of $200 million in tax benefits as per Roper’s statement.
Neil Hunn, President and CEO of Roper, expressed his excitement about the acquisition, highlighting CentralReach’s exceptional business attributes such as niche market leadership, mission-critical solutions, high return on investment (ROI), strong customer retention, and robust organic revenue growth. He emphasized that Roper’s identification of CentralReach as a value-creating asset for their shareholders underscores the strategic importance of this acquisition.
CentralReach specializes in offering a range of services including practice management, revenue cycle management (RCM), clinical products, staff development, and data analytics tools. While the company primarily focuses on the autism market, it also extends its services to the broader intellectual and developmental disabilities sector.
Over the past few years, CentralReach, headquartered in Fort Lauderdale, Florida, has experienced exponential growth, expanding its user base from 20,000 to over 200,000 since 2018, as per the company’s press release.
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In 2018, Insight Partners, a prominent global venture capital and private equity firm specializing in high-growth technology, software, and internet businesses, made a strategic investment in CentralReach.
Chris Sullens, CEO of CentralReach, acknowledged the instrumental role played by Insight Partners in facilitating the company’s remarkable organic growth over the past six years, complemented by 14 strategic acquisitions that accelerated their roadmap. Sullens emphasized the importance of finding a partner aligned with their values and vision for technology-enabled autism and IDD care, leading to the decision to join forces with Roper Technologies.
Following the acquisition, CentralReach will operate autonomously, retaining its existing leadership, team, products, brands, and mission. Sullens expressed optimism about the collaboration with Roper, foreseeing accelerated growth, innovation, and enhanced impact in advancing their mission under Roper’s long-term investment and commitment.
Roper Technologies, headquartered in Sarasota, Florida, is a diversified technology company specializing in designing and developing software and engineered products for niche markets, including healthcare, transportation, food, and energy sectors.
Roper reported a revenue of $7.04 billion in 2024, marking a 14% increase compared to 2023, with acquisitions playing a significant role in driving this growth trajectory. Apart from CentralReach, Roper’s recent acquisitions include Procare Solutions, an early childhood education software company.
CentralReach is expected to contribute approximately $175 million in revenue and $75 million in EBITDA for the 12 months ending June 30, 2026, as per Roper’s announcement. The transaction is slated to close in April or May of this year.
