LAKEWOOD RANCH -- Roper Industries is buying Managed Health Care Associates for $1 billion, according to a company announcement.
Managed Health Care Associates is an Internet-based, health care marketing business that focuses on lowering costs for acute health care. The Florham, N.J., company provides services to long-term health care pharmacies, assisted living facilities, and long-term care facilities.
Roper Industries designs, manufactures and distributes radio frequency products and services, industrial technology products, energy systems and controls, as well as medical and scientific imaging products and software. The company, with annual revenues of $2.7 billion, is scheduled to release its quarterly earnings at the end of the month.
"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 CEO, in a statement.
"The company has attractive cash return characteristics and generates substantial recurring revenue through long-term customer relationships and very high retention rates."
The transaction is expected to be completed in 30 days and is subject to regulatory approval and customary closing conditions, Roper said.
Roper expects Managed Health Care Associates to generate $95 million in earnings before interest, taxes, depreciation and amortization during the next 12 months.
In 2012, Roper purchased Sunquest Information Systems, which provides laboratory software for hospitals, for $1.4 billion.
In 2011, Roper also acquired Northern Digital Inc., which makes three-dimensional measurement systems used in computer assisted medical treatment, for $200 million.
At the end of the day, Roper shares were trading at $122.35, up 1.81 percent from Wednesday's market close of $120.54.