The Medical Technology Blog

Sunquest becomes latest company to meet Roper’s key acquisition criteria

Welcome back to the Medical Technology Blog, we have a great post today provided by Sophie Sanderson. Sophie is the editor for Diagnostics Focus , please read on…

Adding to its vastly expanding medical platform and honing in on its focus on diagnostics, Roper Industries has set its sights on the acquisition of Sunquest Information Systems, a provider of diagnostic and laboratory information systems to healthcare providers worldwide, in an all cash transaction valued at nearly US$1.5 billion.

Roper expects the acquisition of Tucson, AZ-based Sunquest to be immediately cash enhancing and to generate around US$140 million or more of EBITDA in 2013. Sunquest, which has offices in the UK and India, is owned by a group of investors resulting from a 2010 recapitalisation led by Huntsman Gay Global Capital, in partnership with Vista Equity Partners, which has owned the company since 2007. Sunquest is expected to be an ideal fit with Roper’s Medical and Software platforms – which represents just one of the latters four business segments.

Roper is perhaps more commonly known as a designer, manufacturer and distributor of radiofrequency products and services, industrial technology products, energy systems and controls, as well as medical and scientific imaging products and software. Roper’s Medical and Scientific Imaging segment primarily offers products and software in medical applications, high performance digital imaging products and software, and hand-held and vehicle mount computers.

Focusing on the company’s Medical and Scientific Imaging segment, net sales in this area for 2011 were US$611 million, representing 22 per cent of Roper’s total net sales, which reached an impressive US$2.8 billion. Acquisitions alone added US$26 million in sales for the year ended 2011.

With claims that its balance sheet is stronger than ever before, and enjoying the more recurring revenue from its disciplined acquisitions of the last several years, it is unlikely that Sunquest will be the last in a string of revenue-generating acquisitions for the company.

Source material: Diagnostics Focus


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