Roper Industries to Acquire MHA

Roper Industries, Inc announced that it has entered into a definitive agreement to acquire Managed Health Care Associates, Inc (MHA) in a cash transaction valued at $1.0 billion.

Headquartered in Florham Park, New Jersey, MHA provides services and technologies to support the diverse and complex needs of alternate site health care providers who deliver services outside of an acute care hospital setting. MHA has the leading market position serving multiple niche markets including long-term care pharmacies, assisted living facilities, long-term care facilities, infusion and specialty pharmacies and other alternate site providers. MHA’s services, software and analytics enable its customers to manage reimbursement, increase market access, reduce business complexity and purchase more efficiently.

Roper expects the acquisition of MHA to be immediately cash accretive and to generate $95 million of EBITDA over the first 12 months of ownership, excluding the impact of acquisition-related fair value accounting.

“MHA meets all of Roper’s key acquisition criteria and is an excellent addition to our Medical platform,” said Brian Jellison, Roper’s chairman, president and chief executive officer. “The business provides the leading network of solutions to the alternate site healthcare market. MHA’s powerful technology tools and proven customer-service model continue to drive growth in their multiple niches. The company has attractive cash return characteristics and generates substantial recurring revenue through long-term customer relationships and very high retention rates.”

Mr. Jellison continued, “MHA has a compelling business model and we have been impressed by the management team’s passion and commitment. We look forward to working to enhance the value of the business for the benefit of customers, employees and shareholders. The business will continue to operate as MHA, marketing technologies and services under current brand names.”

Completion of the transaction is expected within 30 days, subject to regulatory approval and customary closing conditions.

About Roper Industries

Roper Industries is a diversified growth company and is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper provides engineered products and solutions for global niche markets, including software information networks, medical, water, energy, and transportation. Additional information about Roper is available on the company’s website at www.roperind.com.

SOURCE: MHA