After reporting stronger year-over-year quarterly earnings, Roper Industries (NYSE:ROP) said it is buying privately-held diagnostic and laboratory software maker Sunquest Information Systems for $1.4 billion in cash.
The Sarasota, Fla.-based medical and scientific imaging software developer said the acquisition of Tucson, Okla.-based Sunquest, a leader in labs software, will help its medical software platforms benefit from an aging population and expansion of anatomic pathology.
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"We continue to transform the enterprise with the addition of Sunquest," Roper CEO Brian Jellison said in a statement. “We expect Sunquest to benefit in all economic environments from very favorable market forces.”
Sunquest and its products will continue to operate under current brand names. The deal, subject to customary closing conditions, is expected to close within 30 days.
Roper, meanwhile, reported on Monday net earnings of $115 million, or $1.15 a share, up 8% from a year ago. Revenue climbed 4% to $725 million, led by an 8% increase in orders to $763 million.
Analysts in a Thomson Reuters poll were looking for earnings of $1.15 a share on higher sales of $747 million.
"We achieved record second quarter revenue and earnings, as our businesses continued to execute well in the current uncertain economic environment,” Jellison said.
Shares of Roper ticked 7% higher Monday to a new all-time high.