Roper Buying MHA Health-Care Services Provider

Sarasota, Fla.-based Roper Industries (NYSE: ROP  ) took a step away from its core industrial manufacturing business Wednesday, announcing its intent to buy New Jersey-based Managed Health Care Associates, or MHA.

MHA provides software, business analytics, and other services to various long-term care pharmacies, assisted-living facilities, long-term care facilities, and infusion and specialty pharmacies in the markets it serves.

Roper puts the purchase price at $1 billion, or approximately 10.5 times MHA's expected earnings before interest, taxes, depreciation, and amortization over the next 12 months. As such, Roper appears to have good reason for shifting away from its core business a bit: It's getting a bargain relative to the 13 times EBITDA valuation that its own shares command.

Investors appear to agree. Roper shares, which sagged in Wednesday trading, began to perk up after hours -- gaining as much as 0.7% as of this writing, and topping $121.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2369428, ~/Articles/ArticleHandler.aspx, 9/22/2014 4:11:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement