Kirkland-Led Warburg Selling Procare In $1.9B Deal

Kirkland-Led Warburg Selling Procare

In a strategic move set to redefine the landscape of child care software, Roper Technologies Inc. has announced the acquisition of Procare Solutions for nearly $1.9 billion. The deal, orchestrated by New York-based growth investor Warburg Pincus and private equity firm TA Associates, marks a significant shift in the industry’s dynamics.

Kirkland-Led Warburg Selling Procare

Under the guidance of legal juggernaut Kirkland & Ellis LLP, Warburg Pincus, a pivotal player in the transaction, is facilitating the sale of Procare Solutions. Having initially invested in Procare back in August 2018, Warburg Pincus has been instrumental in steering Procare through a phase of exponential growth, solidifying its position as a market leader.

TA Associates’ Strategic Maneuver

TA Associates, having acquired a majority stake in Procare in May 2015, made strategic moves by selling a portion of its stake to Warburg Pincus in 2018. In the latest development, TA Associates is relinquishing its remaining minority stake to Roper Technologies, completing a series of calculated maneuvers that set the stage for the monumental deal.

Deal Valuation and Strategic Insights

The acquisition, valued at $1.86 billion, holds promise for both parties involved. Roper Technologies, a Sarasota-based software and technology company, highlights the net purchase price of approximately $1.75 billion, factoring in a $110 million tax benefit. Procare’s robust market presence is underscored by its status as a leading provider of cloud-based software for early childhood education centers, boasting a clientele of over 37,000 organizations.

Kirkland-Led Warburg Selling Procare : Future Outlook and Closing Details

With the transaction poised to culminate in the first quarter of 2024, pending regulatory approvals and customary closing conditions, the anticipation surrounding the deal is palpable. Procare’s management team, headquartered in Denver, remains steadfast in its commitment to driving the company’s growth trajectory, preserving its brand identity and office locations.

Kirkland’s Legal Expertise at the Helm

The legal orchestration of this monumental deal falls under the purview of Kirkland & Ellis LLP, spearheaded by corporate partners Keri Schick Norton and Jai Agrawal, along with tax partners David Grenker and Vivek Ratnam. The meticulous execution of legal intricacies underscores Kirkland’s prowess in navigating complex transactions of this nature.