Thoma Bravo, a leading technology-focused private equity firm, has announced that it has signed a definitive agreement to sell Frontline Education, a leading educational software provider, to Roper Technologies in an all-cash transaction valued at approximately $3.725 billion.
The transaction is expected to close in the fourth quarter, subject to regulatory approvals and customary closing conditions, according to a news release provided by the company.
Frontline Education is a leading provider of school administration software, offering solutions for human capital management, student and special programs, and business operations with powerful analytics to increase productivity and improve overall performance for K-12 administrators. Frontline partners with school systems to deliver tools, data, and insights that support greater efficiency and productivity, enabling school leaders to spend more time and resources executing strategies that drive educator effectiveness, student success, and district excellence.
Frontline's broad portfolio includes solutions for proactive recruiting and hiring, absence and time management, professional growth, student information systems, special education, special programs, Medicaid reimbursement, school health management, inventory control and asset management, payroll, benefits and financial management, and analytics solutions that help district leaders tap into their data to make more informed decisions for the benefit of their students and communities.
Commenting on the development, Holden Spaht, Managing Partner at Thoma Bravo, said in a statement,
"There is a great sense of pride and accomplishment as we reflect on our partnership with Frontline. Over the past five years, we have worked closely with the management team to significantly grow the ARR of the company and build an integrated, market-leading software and analytics platform developed specifically for the unique challenges faced by K-12 administrators and educators. We are not only very proud of Frontline's financial success, but also its positive impact on the K-12 education system and we look forward to watching the company continue to grow and further its important mission under Roper's ownership."
Thoma Bravo acquired Frontline in 2017, and during the five-year partnership, the company leveraged its specialized operating model and deep sector expertise to enable Frontline to drive profitable growth and expand its market leadership in the K-12 education sector.
Mark Gruzin, CEO of Frontline Education, said,
"We are deeply appreciative of Thoma Bravo's partnership over the last five years and the countless contributions from our dedicated team members, which have allowed us to deliver an expanded portfolio of mission-critical solutions for our clients. Roper's acquisition of Frontline Education represents the next phase of our journey, as we stay true to our culture and mission of partnering with K-12 schools in their pursuit of excellence."
Welcoming Frontline to Roper’s family, Neil Hunn, President & CEO of Roper Technologies, said,
"Frontline is a terrific business with clear niche market leadership, a proven track record of strong organic and inorganic growth, excellent cash conversion, and an outstanding management team that will thrive as part of Roper. The acquisition of Frontline demonstrates Roper's disciplined capital deployment strategy that focuses on identifying high-quality, market-leading technology businesses that will enhance Roper's cash flow compounding. We are excited to welcome Frontline to the Roper family.”
Roper Technologies is a constituent of the S&P 500 and Fortune 500. The company operates market-leading businesses that design and develop vertical software and technology-enabled products for a variety of defensible niche markets. It utilizes a disciplined, analytical, and process-driven approach to redeploy its excess free cash flow toward high-quality acquisitions.
J.P. Morgan Securities LLC, Jefferies LLC, and Macquarie Capital served as financial advisors, and Kirkland & Ellis LLP as legal advisor to Thoma Bravo and Frontline Education.