(Reuters) – Roper Technologies (ROP.N) said on Tuesday it would acquire educational software maker Frontline Education for $3.7 billion to strengthen its presence in the K-12 market. .

The transaction complements Roper’s ‘Horizon’ offering for the K12 segment and marks a stronger push by the company to reshape its position as a software company through acquisitions. Read more (https://reut.rs/3cwnlZm)

Roper acquired Frontline from technology-focused private equity firm Thoma Bravo, which acquired the company for an undisclosed price in 2017.

Pandemic-related fatigue and low wages are causing a shortage of teachers in the United States. Education software companies are also benefiting from increased demand from school districts, which are investing more in cloud-based software solutions after the pandemic.

“This market, like so many others, is undergoing a significant digital transformation,” said Neil Han, CEO of Roper.

Frontline’s recruiting software helps school districts recruit, recruit, train and develop staff and manage absenteeism and substitute teachers, executives said.

Roper, which recently sold its legacy industrials business, will use cash and debt to fund the transaction. The transaction has a net purchase price of approximately $3.38 billion and is expected to close in the fourth quarter.

“We were hoping for a big deal, with open-market software valuations dropping and industrial businesses being sold,” said Bernstein analyst Brendan Luecke.

Frontline management will continue to lead from its headquarters in Malvern, Pennsylvania. The company said its name, brand and office location will remain unchanged.

JP Morgan Securities, Jefferies and Macquarie Capital acted as financial advisors to Thoma Bravo and Frontline Education.

Reported by Chavi Mehta and Nathan Gomes of Bengaluru. Edited by Sriraj Kalluvila

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