Business Acquisition and Assets and Liabilities Held for Sale

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Business Acquisition and Assets and Liabilities Held for Sale

Business Acquisition and Assets and Liabilities Held for Sale

During the first quarter of 2019 Roper reached a definitive agreement to acquire Foundry in an all-cash transaction valued at £410.0 (GBP). On April 18, 2019, Roper acquired 100% of the shares of Foundry, a leading provider of software technologies used to deliver award-winning visual effects and 3D content for the entertainment, visualization, and digital design industries. We will include the results of Foundry beginning in our second quarter 2019 condensed consolidated financial statements within our Network Software & Systems reportable segment.

Assets and Liabilities Held for Sale

During the second quarter of 2018, Roper and Thermo Fisher Scientific, Inc. (“Thermo Fisher”) entered into a definitive agreement under which Thermo Fisher will acquire 100% of the shares of Gatan, Inc. (“Gatan”), a wholly owned subsidiary of Roper, for approximately $925.0 in cash. The transaction, which is expected to be completed in 2019, is subject to customary closing conditions, including regulatory approvals. Gatan is reported in the Measurement & Analytical Solutions segment.

At December 31, 2018 and March 31, 2019, the assets and liabilities of Gatan were classified as held for sale on Roper’s condensed consolidated balance sheets. The Company recognized a deferred tax liability of $10.0 associated with the excess of book basis over tax basis in the shares of Gatan during 2018.

The Company closed on its sale of Princeton Instruments, Photometrics, Lumenera, and other brands (collectively, the “Imaging” businesses) to Teledyne Incorporated on February 5, 2019 for approximately $225.0 in cash. The results of the Imaging businesses are reported in the Measurement & Analytical Solutions segment through such date. The sale resulted in a pretax gain of $119.6, which is reported within “Gain on disposal of business” in the condensed consolidated statement of earnings. In addition, we recognized income tax expense of $30.0 in connection with the sale, which is included within “Income taxes” in the condensed consolidated statement of earnings. The assets and liabilities of the Imaging businesses were classified as held for sale on Roper’s condensed consolidated balance sheet at December 31, 2018.