Roper agrees to acquire TransCore
Nov 1, 2004 12:00 PM
Roper Industries Inc has signed a definitive agreement to acquire TransCore Holdings Inc from an investor group led by KRG Capital Partners LLC in a transaction valued at approximately $600 million. TransCore is a provider of technologies and services in areas such as radio frequency identification, satellite-based communication, mobile asset tracking, security applications and toll system and processing services.
TransCore will operate as a stand-alone segment within Roper and continue to market its products under its current brand names. Its customer offerings include RFID tags and readers, and satellite-based communication hardware and accessories. TransCore's application expertise and technology are used to automate traffic control and toll systems, increase asset productivity, and automate business processes for customers primarily in North America. TransCore is extending its expertise into emerging opportunities such as homeland security and electronic vehicle registration.
Roper also announced a financing initiative designed to enhance its balance sheet and fund the acquisition. The company has received commitments from JPMorgan Chase Bank and Wachovia NA for a senior secured credit facility consisting of term loans and a revolving credit line. In addition, Roper plans to raise about $250 million of cash by issuing common stock. The size of each of the components of this financing initiative is subject to prevailing market conditions.
TransCore's senior management team, under the leadership of John Worthington, president and chief executive officer, will continue to lead the business. Headquartered in Harrisburg PA, TransCore has 1,800 employees throughout North America.
The acquisition is expected to close before the end of 2004, subject to anti-trust review and customary closing conditions.
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