Roper Industries has agreed to acquire iTradeNetwork, a provider of trading network and business intelligence offerings to the food industry, from technology-focused private equity investment firm Accel-KKR, in a $525m all-cash transaction.
Roper, which provides engineered products used in water, energy, radio frequency and research/medical applications, said that iTradeNetwork is an "excellent addition" to its SaaS businesses and complements its software services platforms built with CBORD/Horizon and Freight Matching businesses.
Headquartered in Pleasanton, California, iTradeNetwork’s offerings serve over 6,200 customers transacting over $250bn annually. The company’s offerings allow distributors, manufacturers, operators and retailers to reduce supply chain costs.
Roper said that this acquisition gives them additional scale to pursue acquisitions in the software offerings space. iTradeNetwork’s management team, under the leadership of Rob Bonavito, will continue to lead the business as part of Roper.
Brian Jellison, chairman, president and CEO of Roper, said: "Importantly, the transaction meets all of our acquisition criteria. iTradeNetwork operates a unique platform that generates significant cash flow and has low working capital requirements.
"Because of the considerable value the company creates for its participants, 97% of revenue is recurring in nature with long-term, subscription-based contracts that historically have had a 99% renewal rate."
