(Reuters) – Roper Technologies Inc (ROP.N) said on Thursday it would buy Vertafore Inc, a private equity-owned insurance software vendor, for about $5.35 billion, in what would be its largest takeover deal to date.

Reuters had earlier reported that the company was competing with private equity firms in an auction for Vertafore, which is owned by buyout firms Vista Equity Partners and Bain Capital.

Acquiring Vertafore would be in line with Roper’s strategy of snapping up software companies in niche markets with strong recurring revenues.

It also signals that the highly acquisitive company has not given up on its expansion plans in the wake of the COVID-19 pandemic, which has caused some of its customers to review their spending plans.

Roper expects Vertafore to contribute about $590 million of revenue and $290 million of earnings before interest, taxes, depreciation and amortization in 2021.

Insurance software companies have seen rising demand for products that give customers instant access to their information and help insurance providers cut costs.

Vertafore, based in Denver, is one of the primary vendors of software to the property and casualty insurance industry. Vista and Bain acquired the company in 2016 from private equity firm TPG for $2.7 billion, including debt.

Roper expects the acquisition to close in the third quarter and be immediately cash accretive.

J.P. Morgan and Wells Fargo Securities served as financial advisers to Roper.

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