Roper Industries, a provider of engineered products and solutions for global niche markets, has agreed to acquire Sunquest Information Systems, a provider of diagnostic and laboratory software solutions to healthcare providers.

The all cash transaction is valued at $1.4 billion, including $25 million in cash tax benefits. The business will continue as Sunquest, marketing products and services under current brand names.

Roper expects the acquisition of Sunquest to be immediately cash accretive and to generate $140 million or more of EBITDA in 2013, excluding the impact of fair value accounting of Sunquest's deferred revenue. Sunquest is owned by a group of investors resulting from a 2010 recapitalization, led by Huntsman Gay Global Capital, in partnership with Vista Equity Partners, which has owned the company since 2007.

Based in Tucson, Ariz., Sunquest provides a comprehensive suite of clinical and anatomic laboratory software solutions. More than 1,700 hospital laboratories, which provide information that drives the majority of diagnostic decisions, use Sunquest software solutions to integrate data and improve workflow. Sunquest also provides a growing suite of software solutions beyond the hospital laboratory with a focus on point-of-care patient safety and physician outreach.

"Sunquest meets all of Roper's key acquisition criteria and is an ideal fit with both our medical and software platforms," said Brian Jellison, chairman, president and CEO of Roper. "The business is the market leader in software solutions for the critically important healthcare provider laboratory market. We expect Sunquest to benefit in all economic environments from very favorable market forces—an aging population, expansion of anatomic pathology, and the need for reduced healthcare costs and improved quality of care.”

Richard Atkin, president and CEO of Sunquest, added, "As we move forward, we will have the financial and strategic resources necessary to provide enhanced product offerings and expand into new areas.”

Completion of the transaction, which is expected within 30 days, is subject to Hart-Scott-Rodino approval and customary closing conditions.