Context

Roper Technologies has entered into a definitive agreement to acquire Procare Solutions from Warburg Pincus and TA Associates. The transaction marks a successful exit for Warburg Pincus, which held the majority stake for over five years, during which time Procare transitioned into a next-generation SaaS leader through aggressive product innovation and strategic acquisitions. The strategic rationale for Roper is to add a high-quality, vertically-focused software asset with a massive installed base in the resilient early childhood education sector. Procare is expected to generate approximately $260 million of revenue and $95 million of EBITDA in 2024, representing a significant addition to Roper’s application software segment. The deal is structured to capitalize on Procare's consistent growth in new center additions and the continued cross-selling of payment modules.

Target

Procare Solutions is the leading provider of integrated child care center management software and payment processing in the US. Its business model functions as a core system of record for early childhood educators, automating workflows for registration, attendance tracking, staff management, and lesson planning. The company’s value proposition centers on its comprehensive "end-to-end" suite that handles complex operational, compliance, and accounting functions for over 37,000 child care centers. Strategically, Procare leverages a dual-stream revenue model combining SaaS subscription fees for its management platform with high-margin integrated payment processing. By incorporating family engagement and curriculum tools, the platform has become an essential digital partner for centers ranging from single-site operations to national enterprises.