v3.26.3
ACQUISITIONS
 9 Months Ended
Sep. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Romex Pest Control Acquisition
On April 1, 2026, the Company acquired 100% of Romex Pest Control, LLC ("Romex") for $95.7 million. The Company funded this acquisition using cash on hand and borrowings under the commercial paper program.
The acquisition expanded the Rollins family of brands, and management believes the acquisition will drive long-term value given Romex's attractive financial profile and complementary end market exposure.
The Romex acquisition has been accounted for as a business combination, and Romex's results of operations are included in the Company's operations from the acquisition date. During the three and nine months ended September 30, 2026, Romex contributed revenues of $10.1 million and $20.3 million, respectively, and net earnings of $0.7 million and $1.5 million, respectively.
The valuation of the Romex acquisition was performed by a third party valuation specialist under management’s supervision. The preliminary values of identified assets acquired and liabilities assumed as of September 30, 2026 are summarized as follows:
(in thousands)
Initial Preliminary Allocation as of 4/1/2026Measurement Period AdjustmentsUpdated Preliminary Allocation as of 4/1/2026
Cash$1,412 $— $1,412 
Accounts receivable806 8 814 
Materials and supplies345 — 345 
Other current assets276 2 278 
Equipment and property3,131 — 3,131 
Goodwill46,223 30 46,253 
Customer contracts38,600 — 38,600 
Trademarks & tradenames7,300 — 7,300 
Operating lease right-of-use assets851 — 851 
Accounts payable(117)— (117)
Accrued compensation and related liabilities(608)— (608)
Other current liabilities(1,364)(40)(1,404)
Operating lease liabilities(851)— (851)
Unearned revenue(287)— (287)
Assets acquired and liabilities assumed$95,717 $— $95,717 
Included in the total consideration above are cash payments of $85.5 million made upon closing, contingent consideration valued at $5.2 million that is based on Romex's expected financial performance in the two years following the acquisition, and holdback liabilities valued at $5.0 million to be held by the Company to settle indemnity claims and purchase price adjustments. The fair value of the contingent consideration was estimated using a Monte Carlo simulation. During the three and nine months ended September 30, 2026, we recognized a charge of $0.9 million and $1.8 million, respectively, related to adjustments to the fair value of contingent consideration resulting from the acquisition of Romex. These adjustments are reported in sales, general and administrative expenses on our condensed consolidated statement of income.
The acquired Romex customer contracts are estimated to have a remaining useful life of 9.5 years. The acquired trademarks and tradenames are expected to have an indefinite useful life. See Note 6, Goodwill and Intangible Assets, for further details.
Goodwill from this acquisition represents the excess of the purchase price over the fair value of net assets of the business acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. The recognized goodwill is expected to be deductible for tax purposes.
Pro Forma Financial Information
The following table presents unaudited consolidated pro forma information as if the acquisition of Romex had occurred on January 1, 2025. The information presented below is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition had actually occurred as of the beginning of such years or results which may be achieved in the future.

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Revenues$1,089,670 $1,035,611 $3,083,191 $2,874,200 
Net income157,186 164,223 408,906 412,354 
The information adjusts for the effects of material business combination items, including the alignment of accounting policies, the effect of fair value adjustments including the amortization of acquired intangible assets, and income tax effects.
Other 2026 Acquisitions
The Company made 15 other acquisitions during the nine months ended September 30, 2026. The aggregate preliminary values of major classes of assets acquired and liabilities assumed recorded at the dates of acquisition are summarized as follows:
(in thousands)
2026
Cash$7 
Accounts receivable2,252 
Materials and supplies514 
Equipment and property2,915 
Goodwill44,870 
Customer contracts33,619 
Trademarks & tradenames1,582 
Accrued compensation and related liabilities(160)
Unearned revenue(920)
Other assets and liabilities, net2,070 
Assets acquired and liabilities assumed$86,749 
Included in the total consideration of $86.7 million are acquisition holdback liabilities of $8.1 million.
Goodwill from acquisitions represents the excess of the purchase price over the fair value of net assets of businesses acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. A majority of the recognized goodwill is expected to be deductible for tax purposes. Valuations of certain assets and liabilities, including intangible assets and goodwill, as of the acquisition date have not been finalized at this time and are provisional.
Saela Pest Control Acquisition
On April 1, 2025, the Company acquired 100% of Saela Holdings, LLC ("Saela") for $207.2 million. The Company funded this acquisition using cash on hand and borrowings under the commercial paper program.
The acquisition expanded the Rollins family of brands, and management believes the acquisition will drive long-term value given Saela's attractive financial profile and complementary end market exposure.
The Saela acquisition was accounted for as a business combination, and Saela's results of operations are included in the Company's operations from the acquisition date.
The valuation of the Saela acquisition was performed by a third party valuation specialist under management’s supervision. The values of identified assets acquired and liabilities assumed were finalized as of March 31, 2026 and are summarized as follows:
(in thousands)
Final Fair Value
Cash$1,522 
Accounts receivable805 
Materials and supplies573 
Other current assets414 
Equipment and property4,657 
Goodwill129,262 
Customer contracts56,300 
Trademarks & tradenames17,300 
Operating lease right-of-use assets991 
Accounts payable(1,984)
Accrued compensation and related liabilities(1,064)
Other current liabilities(558)
Operating lease liabilities(991)
Assets acquired and liabilities assumed$207,227 
Included in the total consideration above were cash payments of $193.7 million made upon closing, contingent consideration valued at $8.8 million that is based on Saela's expected financial performance in the two years following the acquisition, and holdback liabilities valued at $4.7 million to be held by the Company to settle indemnity claims and purchase price adjustments. The fair value of the contingent consideration was estimated using a Monte Carlo simulation. During the three and nine months ended September 30, 2026, we recognized a benefit of $0.3 million and a charge of $1.3 million, respectively, related to adjustments to the fair value of contingent consideration resulting from the acquisition of Saela. These adjustments are reported in sales, general and administrative expenses on our condensed consolidated statement of income.
The acquired Saela customer contracts were estimated to have a remaining useful life of 7 years. The acquired trademarks and tradenames are expected to have an indefinite useful life. See Note 6, Goodwill and Intangible Assets, for further details.
Goodwill from this acquisition represents the excess of the purchase price over the fair value of net assets of the business acquired. The factors contributing to the amount of goodwill are based on strategic and synergistic benefits that are expected to be realized. The recognized goodwill is expected to be deductible for tax purposes.
Pro Forma Financial Information
The following table presents unaudited consolidated pro forma information as if the acquisition of Saela had occurred on January 1, 2024. This information presented below is for illustrative purposes only and is not necessarily indicative of results that would have been achieved if the acquisition had actually occurred as of the beginning of such years or results which may be achieved in the future.

Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)20252025
Revenues$1,026,106 $2,863,418 
Net income162,666 408,052 
The information adjusts for the effects of material business combination items, including the alignment of accounting policies, the effect of fair value adjustments including the amortization of acquired intangible assets, and income tax effects.