Diversified manufacturer Roper Industries Inc (ROP.N) said it will buy privately held Sunquest Information Systems Inc, a provider of diagnostic and laboratory software services to healthcare providers, for about $1.4 billion in cash.
Roper, which makes medical and scientific imaging devices, radio frequency products and fluid testing equipment, raised its full-year 2012earnings forecast to between $4.84 and $5.00 per share from its prior view of $4.75 to $4.91 per share.
Tucson, Arizona-based Sunquest is owned by private equity fund Huntsman Gay Global Capital and Vista Equity Partners.
The medical diagnostics sector has seen a lot of takeovers in the recent past, including Thermo Fisher Scientific Inc's (TMO.N) $925 million buy of One Lambda.
Agilent Technologies Inc (A.N) has said it will buy Danish cancer diagnostics firm Dako for $2.2 billion and Hologic Inc (HOLX.O) has said it will acquire Gen-Probe Inc (GPRO.O) for $3.75 billion.
Roper said it expects the deal to immediately add to earnings and to generate about $140 million of earnings before income tax, depreciation and amortization in 2013.
"We expect Sunquest to benefit in all economic environments from very favorable market forces (such as) an aging population," Roper CEO Brian Jellison said in a statement.
The business will continue as Sunquest, marketing products and services under current brand names, Jellison said.
Barclays advised Roper, and Jefferies & Co Inc advised Sunquest.
Shares of Roper closed at $98.59 on the New York Stock Exchange on Friday.
This article is copyrighted by Reuters
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