PHX and Pay-Plus Solutions merge with Parthenon-backed Stratose

Edison Partners-backed Premier Healthcare Exchange, a provider of claims integrity and cost management solutions, together with its subsidiary, Pay-Plus Solutions, and Global Care Inc, have combined with Stratose Inc, a healthcare company owned by Parthenon Capital. The transaction, sponsored by Parthenon, netted Edison a return of more than 10 times its investment, a separate statement said. Edison will maintain a minority ownership in the new company and add its managing director Chris Sugden to the board. Cain Brothers advised PHX and PPS.


Premier Healthcare Exchange (“PHX”), a nationally recognized provider of claims integrity and cost management solutions, together with its electronic payment solutions subsidiary, Pay-Plus® Solutions (“PPS”), has combined with Stratose, a leading provider of comprehensive network and cost management solutions for health plans, TPAs and other healthcare payers. The combination is designed to bring best-in-breed companies, each with leading technology solutions, together to form an end-to-end solution to address the ever-changing needs and complexity of the healthcare industry.

Cain Brothers was selected as exclusive financial advisor to PHX and PPS given Cain Brothers’ deep domain expertise in payer services and HCIT, and its proven track record in achieving superior results for its clients. Cain Brothers was integrally involved in each step of the transaction, negotiating key deal terms and facilitating an abbreviated diligence period.

The transaction was sponsored by Parthenon Capital Partners, a growth-oriented private equity firm that focuses on building leading companies in the healthcare and financial services sectors. “As soon as we began working with Parthenon, we realized that their expertise in building franchise companies along with their financial and strategic resources were a perfect match for PHX and PPS,” said Todd Roberti, Founder and CEO of PHX and PPS. “Cain Brothers’ expert advice and leadership throughout the entire process was invaluable, and led to a compelling strategic and financial outcome for PHX and PPS stakeholders,” said Roberti.

PHX provides an integrated suite of claims integrity and network optimization solutions designed to enable payers to accurately pay medical claims. PHX’s clients include health plans, TPAs and other payers. PPS’ electronic payment and claims documentation platform enables payments between healthcare payers and providers. PPS delivers cost-effective funds disbursement from over 90 payers to 180,000 providers, and processes $3 billion in payments annually.