Stratose Inc., a managed care cost containment technology services company has retained Piper Jaffray & Co. for a sale of the company, according to multiple industry sources. The company, which serves the payor community, provides cost containment solutions for medical, dental and workers’ compensation claims–using technological applications. With an estimated Ebitda of $20 to $30 million, the sale could likely pull in $240 to $400 million in a sale. According to industry bankers, similar companies in the space have garnered multiples of 12 to 13.5 times Ebtida in sales. The company’s preferred provider organization (PPO) network includes more than 850,000 direct and affiliate medical, dental and workers’ compensation provider contracts, according to the company. The company provides algorithms and its own Established Reimbursement Schedule to give payors and providers context for payment and contracting decisions, among other services.
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