The ratings on Roper Industries Inc. reflect its leading position in profitable niche markets and its broad product, end-market, and geographic diversity, which helps stabilize cash flow generation. These factors are partly offset by Roper's increased leverage as a result of the acquisition of Neptune Technology Group Holdings Inc.'s water meter and automatic meter reading technology on Dec. 29, 2003, and by Roper's moderate size, which limits debt capacity and financial flexibility. Roper produces control systems, imaging products, pumps, and instruments. It benefits from technological leadership, high profit margins, and low capital expenditures because of its light asset base. Standard&Poor's Ratings Services believes the Neptune acquisition, once integrated successfully, is a good strategic fit with Roper's existing product
