Roper Industries Inc. (NYSE: ROP) has agreed to acquire financial software company Strata Decision Technology LLC, spotlighting the interest in cloud-based technology providers as attractive targets.

The deal also underscores how health care companies are turning to technology acquisitions to improve cost efficiencies and expand services. Strata is known for its cloud-based analytics used for financial planning and cost improvement servicing more than a thousand hospitals.

The company has been owned by private equity firm Veronis Suhler Stevenson (VSS) since July 2011. At the time, VSS facilitated the deal through VSS Structured Capital Fund II. Financial terms of the sale to Roper remain undisclosed.

Strata CEO Dan Michelson has praised the sale process, as well as Roper's experience in growing technology companies. The Sarasota, Florida-based buyer is known for buying engineered products and services for niche markets, including medical software, utilities and transportation. In 2014, Roper bought IPA LLC, a maker of hospital equipment, from Riverside Partners. Before that, the company purchased Managed Health Care Associates in May 2013 for $1 billion.

Strata's management team, led by Michelson, will continue to lead the business from its Chicago headquarters. The company will operate as part of Roper's medical subsidiary.

 

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