Parthenon Capital Partners said Tuesday it has invested in Stratose Inc. via a recapitalization. Existing Stratose shareholders will retain “meaningful” ownership stakes. Financial terms weren’t announced. Atlanta-based Stratose provides healthcare cost containment solutions for medical, dental and workers’ compensation payers, third-party administrators, self-funded entities and risk-bearing providers. Piper Jaffray & Co. advised Stratose.
BOSTON–(BUSINESS WIRE)–Parthenon Capital Partners (“Parthenon”), a growth-oriented private equity firm, announced the recapitalization of Stratose, Inc. (“Stratose” or the “Company”), a leader in healthcare cost containment solutions for medical, dental and workers’ compensation payers, third-party administrators, self-funded entities and risk-bearing providers. The Company will be owned by affiliates of Parthenon and the existing Stratose shareholders, all of whom retained meaningful ownership stakes.
“We are excited to partner with Parthenon to pursue our growth strategy and to continue to provide market-leading solutions that help our clients achieve significant savings,” said Sean Smith, Stratose’s Co-Founder and Chairman. “We believe Parthenon’s extensive investment experience in healthcare and deep understanding of the complex dynamics between payers, providers and patients will provide us with valuable support as we look to grow Stratose through continued investment in our technology platform and products.” Scott Smith, Stratose’s Co-Founder and Chief Executive Officer, also remarked, “Parthenon’s approach to growth resonated with us as we seek to expand our offering both organically and through strategic acquisitions. As we continue to execute against our growth plans we look forward to delivering a broader set of innovative solutions to our clients.”
Dave Ament, a Managing Partner at Parthenon, said, “We are excited to have this opportunity to partner with Sean, Scott and the Stratose management team. We believe Stratose is well-positioned to help payers in multiple end markets address an acute pain point by delivering a compelling set of technology-enabled, network management and analytics solutions.”
Kurt Brumme, a Vice President at Parthenon, added, “Stratose is re-defining success in claims cost containment with its innovative ‘quality of discount’ approach. This success combined with the Company’s track record of providing new solutions will enable Stratose to drive consistently better savings outcomes for its customers for years to come.”
The current Stratose executive team will continue to lead the organization post-closing, and co-founders Sean and Scott Smith will also maintain active Board roles. Piper Jaffray & Co. served as exclusive financial advisor to Stratose and Kirkland & Ellis, LLP acted as legal advisor to Parthenon Capital Partners in connection with the transaction.
Stratose (www.stratose.com) is a marketplace leader providing comprehensive solutions for managing healthcare costs. Stratose utilizes proprietary technology and a suite of products and services to deliver industry leading discounts on medical, dental and workers’ compensation billings by accessing direct provider contracts, PPO networks, provider negotiations, proprietary re-pricing tools including Medicare, to achieve industry leading savings for its national client base.
ABOUT PARTHENON CAPITAL PARTNERS
Parthenon Capital Partners (www.parthenoncapitalpartners.com) is a leading mid-market private equity firm based in Boston and San Francisco. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in healthcare technology and services, financial and insurance services and business services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how. Parthenon’s investment team has deep experience in corporate strategy, human capital, capital markets and operations, thereby enabling the firm to pursue complex, multi-faceted value creation opportunities.