Upcoming AWS Coverage on Donaldson Co. Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 7, 2016 / Active Wall St. blog coverage looks at the headline from diversified technology firm Roper Technologies, Inc. (NYSE: ROP) as the Company announced on December 6, 2016, that it has entered into a definitive agreement to acquire Deltek, the leading global provider of software and information solutions. The transaction is valued at $2.8 billion and will be executed as an all-cash agreement. With a user base accounting into millions and more than 22,000 organizations in over 80 nations, Deltek provides solutions for project-based businesses. The client base for Deltek extends from several government contractors and federal institutions to professional services firms. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
One of Roper Technologies' competitors within the Diversified Machinery space, Donaldson Company, Inc. (NYSE: DCI), reported on December 01, 2016, its fiscal 2017 first quarter earnings. AWS will be initiating a research report on Donaldson in the coming days.
Today, AWS is promoting its blog coverage on ROP; touching on DCI. Get all of our free blog coverage and more by clicking on the links below:
http://www.activewallst.com/registration-3/?symbol=ROP
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Breaking down the acquisition
Roper Technologies acquired Aderant, a leading software solutions provider on October 08, 2015, in a transaction valued at $675 million. This acquisition was closely followed by the agreement with ConstructConnect on October 31, 2016. As per terms of the acquisition, Roper Technologies acquired the cloud-based solution provider firm for approximately $632 million.
Roper Technologies is seemingly banking on the multi-billion dollar growth-intensive cloud computing and big data segments. According to a market analysis report from Deltek itself, the federal cloud computing investments are set to grow from $3.1 billion in 2016 to $6.4 billion in 2021. In the same time period, Big Data products and services are poised to increase from $2.0 billion to $3.6 billion. The Deltek acquisition would let Roper Technologies tap into the rapidly growing private cloud development market and maximize its presence across these two sectors possessing a lot of growth potential.
Deltek offers diversified solutions for several professional firms, enabling them to bid for contracts, optimize resources, recruit talented employees and plan for further projects.
According to Brian Jellison, CEO of Roper Technologies, the Deltek's acquisition was complementary to the portfolio expansion drive of the firm. He added that the acquisition was consistent with the firm's capital deployment strategy, where Deltek possesses several growth opportunities summed up with a sturdy financial profile and a definitive management team.
The highly-anticipated acquisition
Thoma Bravo, LLC, the leading private-equity firm, acquired Deltek on October 10, 2012, for $1.1 billion acquisition. The stocks were priced at $13 per share and this acquisition was the 24th platform company in the acquisition list of the firm within the software and technology segment.
The repercussions of the merger were visible in the markets after Oracle Corp. (NYSE: ORCL) acquired NetSuite Inc. for $9.3 billion, on July 28, 2016. Oracle paid a reported $109 per share, a 19% premium over the previous closing price of $91.57 for NetSuite. This acquisition of the cloud-based enterprise resource planning company, NetSuite, led to explorations by Thoma Bravo to sell out the software provider, Deltek. According to initial reports, Thoma Bravo hoped to value the sales at approximately $3 billion; close to the price of $2.8 billion Roper Technologies has agreed to pay for the acquisition.
Financial Details
This transaction is expected to be accretive to Roper Technologies' 2017 cash flow. The acquisition is set to add $80 million to the firm's 2017 free cash flow. According to reports, Deltek has to deliver $535 million of revenue and $200 million EBITDA in the fiscal year, 2017. The transaction is expected to close prior to the end of the year 2016 and is subject to regulatory approvals and customary closing conditions.
Stock Performance
On Tuesday, the stock closed the trading session at $183.05, marginally up 0.78% from its previous closing price of $181.64. A total volume of 924.25 thousand shares have exchanged hands, which was higher than the 3-month average volume of 583.95 thousand shares. Roper Technologies' stock price advanced 8.01% in the last month, 2.03% in the past three months, and 5.60% in the previous six months. The company's shares are trading at a PE ratio of 27.32 and have a dividend yield of 0.76%.
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