VSS Buys Strata Decision Tech

Private equity firm Veronis Suhler Stevenson will acquire financial software company Strata Decision Technology. Terms of the private investment, which was made by VSS Structured Capital Fund II, were not disclosed. SDT was advised by Berkery, Noyes, & Co., the New York-based investment banking firm.


NEW YORK AND CHICAGO – July 20, 2011 – Veronis Suhler Stevenson (VSS), a leading global private investment firm focused on the information, education, media, communications and business services industries, today announced that an affiliate has acquired financial software company Strata Decision Technology, LLC (SDT). Terms of the private investment, which was made by VSS Structured Capital Fund II, were not disclosed. SDT was advised by Berkery, Noyes, & Co., the New York-based investment banking firm.
Founded in 1996 by husband-and-wife team Dr. Catherine Kleinmuntz and Dr. Don Kleinmuntz, Strata Decision Technology develops, markets and implements web-based financial analytics and performance management software tools used primarily by U.S. hospitals and healthcare systems to enhance their financial planning, budgeting, and reporting processes. The Company has provided services to more than 800 hospitals and thousands of hospital-affiliated healthcare provider organizations, including Allina Hospitals and Clinics, Catholic Healthcare West, Cleveland Clinic, Johns Hopkins Medicine, New York-Presbyterian Hospital, Providence Health and Services, Trinity Health, and Yale New Haven Health System.
Chicago-based Strata Decision Technology’s products serve the needs of C-level and senior financial and operational decision-makers who use SDT tools to drive collaboration, facilitate the coordination of plans and strategies, and communicate with non-financial audiences. SDT’s signature StrataJazz platform offers a fully integrated SaaS (Software as a Service) suite of corporate financial analytic solutions designed to help organizations improve their financial and operational performance. The company’s blend of products and services provide a comprehensive solution for planning and reporting, combined with outstanding implementation and support services to reduce the customer’s total cost of ownership.
“We believe Strata Decision Technology has significant potential to continue to grow and succeed in the marketplace as healthcare providers work to respond to healthcare reform by using business intelligence tools to maximize efficiency,” said Hal Greenberg, Partner, VSS Structured Capital Funds. “The Company’s fully integrated financial software tools are replacing inefficient, homegrown solutions or obsolete legacy solutions at many institutions. SDT is well positioned because of its ability to provide customers with easy-to-use technology that delivers greater oversight of their financial performance.”
“In addition to ongoing refinement of the market leading StrataJazz platform, VSS looks forward to funding development of new decision support tools,“ said David Bainbridge, Partner, VSS. “There are numerous financial, operational and clinical opportunities where the Company’s tools can be leveraged to create value for its customers.”
“Veronis Suhler Stevenson has a deep understanding of healthcare finance and technology, and can provide invaluable support and guidance as we execute our growth plan,” said Dr. Don Kleinmuntz, Executive Vice President and Chief Financial Officer of Strata Decision Technology, who will remain with the Company in the role of President and also hold a seat on its Board of Directors. “We look forward to working with VSS as we introduce additional products to meet the emerging needs of healthcare providers, and pursue sensible add-on acquisitions.”
“It was important for Strata Decision Technology to find the right business partner. Veronis Suhler Stevenson stood out as a firm with the right mix of resources and experience to help our team develop the company,” said Dr. Catherine Kleinmuntz, who, as President, led SDT from its inception. She will transition from President to the role of Senior Advisor.
VSS has extensive experience in the healthcare information sector, including such platform investments as Avatar International, a leading provider of intelligent and customizable survey-based products for the healthcare industry; Executive Health Resources, a leading provider of expert medical management services to improve hospital compliance and achieve revenue integrity; and Solucient, a leading provider of comprehensive, intelligent market data to assist in the management of U.S. hospitals, managed care facilities, and pharmaceutical companies.
About Strata Decision Technology
Strata Decision Technology, based in Chicago, is a pioneer in the development of innovative software tools for financial and business analytics in the U.S. healthcare industry. Since its founding in 1996, Strata Decision Technology has become a trusted technology partner to leading hospitals, academic medical centers, and healthcare systems. Strata Decision Technology’s unique approach combines sophisticated financial analytics with a flexible, highly configurable platform that enhances collaboration, coordinates plans and strategies, and communicates with non-financial audiences. The company’s website is www.stratadecision.com.
About Veronis Suhler Stevenson
Veronis Suhler Stevenson (“VSS”), founded in 1981, is a leading private equity firm that makes buyout and mezzanine investments in the information, education and media industries in North America and Europe. The VSS Structured Capital funds are dedicated to providing control and non-control capital to middle market companies in the VSS target industries to assist with strategic acquisitions, growth financings, recapitalizations, buyouts and other corporate and shareholder initiatives. VSS Structured Capital II commenced investing in 2009. To date, the six VSS equity and structured capital funds have invested in more than 68 platform companies, which have in turn completed over 305 add-on acquisitions resulting in a portfolio with realized and unrealized enterprise values in excess of $14 billion. The company’s website is www.vss.com.