Roper Technologies to acquire Procare Solutions from Warburg Pincus for $1.86bn

In a significant move in the technology sector, Warburg Pincus, a global growth investor, announced the sale of Procare Solutions, a top provider of child care center management software and payments processing, to Roper Technologies, Inc., for a total enterprise value of $1.86 billion. TA Associates also sold its minority interest in Procare as part of this transaction.

Founded in 1992, Procare has established itself as a leading provider in the U.S., offering integrated solutions for operational, compliance, staffing, billing, and accounting functions in child care centers. Catering to over 37,000 child care centers, Procare’s comprehensive suite of products has been instrumental in addressing the unique and complex demands of the child care industry.

Warburg Pincus has been a key partner in Procare’s journey over the past five years, aiding in customer expansion, product innovation, and strategic acquisitions. This partnership facilitated Procare’s accelerated growth, particularly in new center additions and adoption of new product modules, including payments processing and family engagement solutions.

Warburg Pincus and TA Associates Seal $1.86 Billion Sale of Procare Solutions to Roper Technologies

JoAnn Kintzel, CEO of Procare, highlighted the company’s mission to support child care organizations and expressed enthusiasm for the future under Roper Technologies. She thanked Warburg Pincus and TA for their pivotal role in Procare’s growth, which was especially significant during the challenges of the global pandemic.

Ash Somani, Michael Ding, and Chandler Reedy from Warburg Pincus praised Procare’s transformative growth and its adoption of next-generation SaaS solutions. They expressed pride in Procare’s financial success and its vital role in the child care industry.

Jason Mironov, Managing Director at TA, commended Procare’s growth trajectory and expressed anticipation for its continued expansion and momentum.

The transaction, valued at $1.86 billion, is expected to close in the first quarter of 2024, subject to regulatory approvals and customary closing conditions. William Blair & Company, LLC and Raymond James & Associates, Inc. served as financial advisors, with Kirkland & Ellis LLP as legal counsel for Warburg Pincus.

The acquisition of Procare Solutions by Roper Technologies is a strategic move that underscores the growing importance of specialized software solutions in the child care sector. This transaction reflects the increasing value and potential of technology in streamlining and enhancing child care services, indicating a broader trend towards digitalization in specialized industries.