Roper Industries, an industrial manufacturer, has agreed to purchase Sunquest Information Systems, a maker of diagnostic and laboratory software for $1.42 billion in cash.
The acquisition comes amid increasing consolidation in the medical diagnostics industry.
Sunquest, which specializes in patient management and diagnostics software, will complement Roper's existing medical business. Sunquest's products are currently used in more than 1,700 hospitals.
“Sunquest meets all of Roper's key acquisition criteria and is an ideal fit with both our medical and software platforms,†Brian Jellison, Roper's chief executive, said in a statement. â€The business is the market leader in software solutions for the critically important healthcare provider laboratory market.â€
Sunquest, which is currently owned by private equity firms Huntsman Gay Global Capital and Vista Equity Partners, will continue to market its products under its own brand.
Roper, w hich also operates in the energy and transportation industries, announced on Monday that it generated $115 million in profit on $724.9 million in revenue for the second quarter. It upped its full-year earnings outlook to a range of $4.84 to $5 per share, from $4.75 to $4.91 per share.
Roper Industries hired Barclays to serve as its financial advisor, while Sunquest was advised by Jefferies & Company.
