Boston, MA – Parthenon Capital Partners, a growth-oriented private equity firm, recently announced the recapitalization of Stratose, Inc., a provider of 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.”
David 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.