Roper moves to grow imaging business with Managed Health Care Associates acquisition

Roper Industries, a Sarasota, Fla.-based industrial technology company, said it plans to acquire Managed Health Care Associates in a $1 billion cash deal to expand its medical and scientific imaging business.

MHA, based in Florham Park, N.J., provides services such as group purchasing, reimbursement management and pharmaceutical data analysis for providers who treat patients outside of an acute-care setting. These include long-term-care pharmacies, assisted-living facilities and infusion and specialty pharmacies.

Roper, which has a market capitalization of about $12 billion, said in a news release that MHA has “attractive cash return characteristics and generates substantial recurring revenue through long-term customer relationships and very high retention rates.”

The company aims to close the deal within 30 days, and expects it to generate $95 million in earnings before interest, taxes, depreciation and amortization during the first year of ownership.

The deal follows Roper's $1.42 billion acquisition in August of Sunquest Information Systems, which added diagnostic and laboratory software solutions to the medical business.

The medical segment last year represented 23.5% of Roper's net sales and 64.4% of gross profit for 2012, according to the company's annual report.

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