Roper Technologies, Inc. [NYSE: ROP] revealed that it has inked an accord to divest its TransCore business to Singapore Technologies Engineering Ltd. Roper Technologies will likely receive $2.68 billion in cash after divesting TransCore business. The sale of the project-oriented TransCore business will optimize ROP’s mix of predictable, high-margin, recurring revenue businesses and particularly decrease its working capital necessities.
Roper Technologies believed that ST Engineering will be the best owner for the TransCore business as it chases the next phase of its advanced work in traffic management, tolling technology, and smart city infrastructure. The ownership of Roper Technologies and its incentive system allowed the TransCore leadership team to significantly enhance project skills and product development.
TransCore is anticipated to create nearly $545 million of revenue and $135 million of EBITDA in 2021. Roper will maintain its DAT and Loadlink network software businesses, which it has purchased along with TransCore in 2004. During the 17-years ownership period, Roper has made DAT and Loadlink network software businesses more worthy.
It has offered long-term investment assistance and an independent operating structure that allowed these businesses to significantly enhance and grow their networks, causing attractive growth profiles that will continue to benefit Roper. Additionally, Roper believed that the after-tax profit of the deal will speed up and strengthen its ability to implement capital toward its strong pipeline of high-quality purchase opportunities.
Furthermore, Roper is likely to explain the results of TransCore as ended operations when it announces its third-quarter 2021 financial results. The firm anticipates that the deal will be executed in the first quarter of 2022. The execution depends on certain conventional closing provisions, including regulatory permission.