VSS Sells Strata Decision Technology to Roper Industries
Completes Third Exit in Healthcare Information Technology Sector
NEW YORK – January 23, 2015 – Private investment firm Veronis Suhler Stevenson (VSS) today announced that it has completed the sale of healthcare information technology portfolio company Strata Decision Technology to Roper Industries (NYSE:ROP), a diversified technology company. Financial terms of the transaction were not disclosed.
The sale of Strata Decision Technology, a VSS Structured Capital Fund II company, is the firm’s third sale of a healthcare information technology company in recent years.
“Dan Michelson has been an outstanding steward for the company and our investment,” said Jeffrey Stevenson, Managing Partner at VSS. “We enjoyed partnering with Dan and his team to help Strata bend the cost curve in healthcare and drive margin, performance and operational efficiencies for U.S. healthcare organizations. Roper Industries will be an excellent platform for Strata Decision Technology to continue its growth curve.”
Founded in 1996, Strata provides a cloud-based, financial analytics and performance platform for financial planning, decision support, and continuous cost improvement to over 1,000 hospitals and some of the largest healthcare delivery systems in the U.S. Its single database, SaaS solution for advanced cost accounting, financial forecasting, capital planning, management reporting, operational budgeting, and performance improvement helps healthcare providers reduce the cost of care and improve overall financial performance.
“Strata’s progress since our investment in June 2011 has exceeded our expectations and is the result of key initiatives implemented early in our investment to scale the company, including recruiting a CEO and CFO, commercializing our decision support tool, expanding our sales and service team, and significantly increasing our product development efforts,” said David Bainbridge, a Managing Director at VSS and a member of the Strata board. “Additionally, we attracted three proven healthcare information technology experts to Strata’s board who provided strategic and operational guidance to the company’s management team.”
“We are gratified that our hard work to build Strata into a market leader has proven successful, and thank the team at VSS and our Board for their strong support,” says Dan Michelson, Chief Executive Officer of Strata Decision Technology. “Coupling their operational know-how and deep healthcare industry experience, we executed on a clear strategy and vision for the company’s growth and look forward to continued expansion, in partnership with Roper.”
The VSS Structured Capital funds are ranked among the top performing funds of similar size, strategy, and vintage as reported by Preqin (as of 1/21/2015). To date, VSS funds have invested in 74 platform companies, which have together completed over 330 add-on acquisitions.
Triple Tree acted as financial advisor to VSS and Strata Decision Technology and Proskauer Rose provided legal advice.
About Veronis Suhler Stevenson
Veronis Suhler Stevenson (www.vss.com) is a leading private investment firm that invests in the information, business services, healthcare IT, and education industries in North America and Europe. VSS provides capital for buyouts, recapitalizations, growth financings and strategic acquisitions to lower middle market companies and management teams with the goal of building companies organically as well as through a focused add-on acquisition program. VSS makes privately-negotiated investments across the capital structure and has the ability to invest in situations requiring control or non-control equity, mezzanine securities and structured equity securities.
About Strata Decision Technology
Strata Decision Technology (www.stratadecision.com) provides an innovative cloud-based financial analytics and performance platform that is used by healthcare providers for financial planning, decision support and continuous cost improvement. Founded in 1996, the Company’s customer base includes 1,000 hospitals and many of the largest and most influential healthcare delivery systems in the U.S.
The Company’s StrataJazz(r) application is a single integrated software platform that includes modules for capital planning, contract modeling, cost accounting, cost management, decision support, financial forecasting, management reporting, operational budgeting and performance improvement and strategic planning. The Company’s headquarters are in Chicago, IL.