Roper Technologies has agreed to buy Transact Campus for $1.5 billion, the software services firm said on Thursday, to strengthen its business that serves higher education institutions and healthcare facilities.

The buyout could help Roper use its cash position to improve its fortunes as the firm grapples with weaker enterprise spending on its diverse software portfolio owing to a tough economy, leading to delayed contract renewals.

Roper expects Transact to contribute around $325 million of revenue in 2025, and will finance the acquisition with cash and a revolving credit facility.

Transact Campus provides services like payment, identification and commerce for improving campus life and will be combined with Roper's CBORD business, which provides nutrition, security and campus commerce services.

The combined entity will be led by Transact's chief executive, Nancy Langer, with the CBORD chief Dan Park serving as COO.

  - Reuters