Performant Healthcare, a provider of technology-enabled payment integrity services, has entered into a definitive agreement to be acquired by Machinify, a healthcare intelligence company, for approximately $670 million. Machinify is a portfolio company of New Mountain Capital.
Under the terms of the deal, Performant stockholders will receive $7.75 per share in cash. This price represents a significant 139% premium to Performant’s 90-day volume-weighted average price.
Simeon Kohl, CEO of Performant, noted that the acquisition is the best path forward for the company’s stakeholders. David Pierre, CEO of Machinify, indicated that combining the companies will allow them to support a broader range of clients, including government entities, and deliver quality payments with reduced administrative costs.
The transaction has been unanimously approved by Performant’s board of directors and is expected to close by the end of 2025, subject to regulatory and shareholder approval. After the closing, Performant’s shares will be delisted from the Nasdaq.
Advisors: Truist Securities is serving as the exclusive financial advisor to Performant, and Pillsbury Winthrop Shaw Pittman is acting as legal counsel. J.P. Morgan Securities is serving as the exclusive financial advisor to Machinify, and Ropes & Gray is acting as legal counsel.
KEY QUOTES:
“What began as a focused effort to solve complex payment integrity challenges has grown into a market-leading solution for healthcare payers. This success is a direct result of our team’s dedication, and I am incredibly proud of the value we have delivered to both our clients and stockholders. After a comprehensive review of strategic alternatives, including continuing to operate as a standalone entity, our board of directors and executive leadership team unanimously concluded that this path represents the best outcome for our stockholders, clients, and employees. Machinify’s aligned values, proven industry expertise, and commitment to advancing innovation will accelerate our mission and amplify our impact across the healthcare landscape.”
Simeon Kohl, CEO of Performant
“At Machinify, we are creating the modern, healthcare payments intelligence platform built for accuracy and transparency. By combining our powerful Payer Operating System with Performant’s trusted domain expertise and differentiated data assets, Machinify will support a broader range of clients, including the Centers for Medicare and Medicaid, and state and local governments. The combined company will deliver quality, timely payments at dramatically reduced administrative costs.”
David Pierre, CEO of Machinify
“Our thesis for the acquisition of Performant is consistent with our prior investments, with a primary focus on reducing administrative inefficiencies through investments in technology, unlocking the value of data. The future of the U.S. healthcare system requires modernization of IT infrastructure, including patient-centric data networks. Performant plus Machinify plus the ecosystem of companies that we are building at New Mountain Capital will unlock the potential for a new system that is aligned with a more productive care model that is both more efficient and delivers better patient outcomes.”
Matt Holt, Managing Director and President of Private Equity at New Mountain Capital
