Deltek getting bought under $2.8B deal

Deltek, the federal market research and software firm for government contractors, is getting a new owner. Roper Technologies is buying Deltek for $2.8 billion. The deal is expected to close in December.

Deltek President and CEO Mike Corkery said in a letter to Deltek customers, which Federal News Radio obtained, that the firm’s name, brand, office locations, strategy and global team will not change as a result of this acquisition.

“Roper focuses on acquiring market-leading companies and holding them for the long term. As such, Roper is now Deltek’s permanent home,” Corkery wrote. “Roper is committed to aggressively investing in our products and employees, and will look to Deltek’s existing management team to lead our company into the future.”

Roper Technologies designs and develops software, and engineered products and solutions for health care, transportation, food, energy, water, education and other niche markets worldwide.

“Deltek offers everything we look for in a Roper company — a specialized focus, innovative products, loyal customers, and a talented team,” Brian Jellison, Roper’s chairman, president and CEO said in a statement. “We look forward to partnering with Mike and the management team to take all that is great about Deltek and accelerate its essential strengths moving forward. As part of the Roper family, Deltek is better-positioned than ever to deliver innovative solutions to the project-based industries that it serves.”

Deltek expects to earn about $535 million in revenue in 2017 from its customer base of 22,000 organizations in more than 80 countries. Deltek provides software to let businesses capture opportunities, recruit and develop talent, optimize resources, streamline operations and deliver their projects on time.

Since 2012, private equity firm Thoma Bravo has owned Deltek. It bought the company for $1.1 billion so four years later, Thoma Bravo is making a $1.7 billion profit on its purchasing price.

Roper Technologies said in a PowerPoint presentation to investors on Dec. 6 that the acquisition of Deltek makes sense because of its strong competitive advantages with high barriers to entry, a loyal, diverse customer base with 97 percent retention rates and multiple drivers for strong organic growth.

Deltek has had an active history of buying and selling in the federal market. In 2012, Deltek sold its consulting firm, the Washington Management Group, to Aronson LLC.

In 2011, Deltek bought its main competitor, FedSources, which included the Washington Management Group, for $26 million.

And in 2010, Deltek acquired Input for $60 million as its first foray into the federal market research sector.

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