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Roper Technologies (ROP) to Divest Gatan Business for $925M

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Roper Technologies, Inc. (ROP - Free Report) recently inked a definitive agreement with Thermo Fisher Scientific Inc. (TMO - Free Report) to divest its wholly owned subsidiary — Gatan, Inc. — against a cash amount of roughly $925 million. The deal, currently subject to customary closing conditions, is expected to be accomplished by the end of this year.

Gatan is a premium manufacturer of software and instrumentation used to extend and improve the performance and operation of electronic microscopes. The premium technologies of the company are used in the domains of electronics, life sciences and material science to support electron microscopy workflows, from imaging and analysis to specimen manipulation and preparation. Gatan is headquartered at Pleasanton, CA, and its major facilities are located in Warrendale, PA. Gatan is predicted to generate roughly $150 million revenues in 2018.

Gatan will reinforce Thermo Fisher’s existing electron microscopy portfolio and post buyout, its business will be included in the latter’s Analytical Instruments segment.

The divestment of Gatan is in sync with Roper Technologies’ inorganic growth strategy. The company streamlines its business on the back of business acquisitions and divestitures. In first-quarter 2018 (ended March 2018), acquisitions and divestments contributed 1% to its top-line growth.

Roper Technologies currently carries a Zacks Rank #2 (Buy). Over the past six months, shares of the company have rallied 4.8%, as against the 10% loss recorded by the industry.

The company pulled off an average positive earnings surprise of 2.95% over the past four quarters.

The company’s Zacks Consensus Estimate of $11.25 for 2018 and $12.16 for 2019 reflects year-over-year growth of 19.4% and 8%, respectively.

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