Roper Technologies, Inc. ROP recently signed a definitive deal with Insight Partners to acquire CentralReach, a provider of SaaS solutions, for Applied Behavior Analysis treatment. The deal is valued at about $1.65 billion, which includes a $200 million tax benefit related to the transaction. Roper expects to fund the buyout through its revolving credit facility.

CentralReach is a well-known provider of autism and intellectual & developmental disabilities (IDD) care software. The company offers a comprehensive software and services platform that facilitates the diagnosis of children and adults with autism spectrum disorder (ASD) and related IDD syndrome. Its solutions are utilized by more than 200,000 professionals globally to offer healthcare for patients.

ROP’s Acquisition Rationale

The latest buyout is in sync with Roper’s policy of acquiring businesses to strengthen its business and product portfolio. The inclusion of CentralReach’s leading software solutions, high recurring revenue mix and strong customer retention capability is expected to boost ROP’s organic revenue and EBITDA growth.

Roper believes that the buyout will contribute revenues of about $175 million and EBITDA of $75 million for the 12-month period ending June 30, 2026. ROP will incorporate CentralReach into its Application Software segment.

Management expects the transaction to be completed in April/May 2025, conditioned on the fulfillment of certain customary closing conditions.

Zacks Rank & Price Performance

With a market capitalization of $61.9 billion, Roper presently carries a Zacks Rank #3 (Hold). The company is witnessing solid momentum in the Application Software segment, driven by strength across its Deltek, Vertafore, PowerPlan and Aderant businesses. Strong product demand across the ConstructConnect and alternate site healthcare businesses is boosting the Network Software segment. However, high debt levels might have an adverse impact on its profitability.

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ROP’s shares have gained 9.1% in the past three months against the industry’s 16.1% decline.

The Zacks Consensus Estimate for 2025 earnings has increased 3.9% to $19.93 per share in the past 60 days.

3 Promising Stocks

Some better-ranked stocks from the same space are discussed below.

We have highlighted three better-ranked stocks from the same space, namely Infosys Limited INFY, Science Applications International Corporation SAIC and Arlo Technologies, Inc. ARLO, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Infosys delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for INFY’s 2025 earnings has been stable at 75 cents per share. 

Science Applications delivered a trailing four-quarter average earnings surprise of 14.6%. In the past 60 days, the Zacks Consensus Estimate for SAIC’s fiscal 2026 (ending January 2026) earnings has increased 1.8%.

Arlo Technologies has a trailing four-quarter average earnings surprise of 3%. The consensus estimate for ARLO’s 2025 earnings has increased 7.1% in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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