Healthcare provider Performant Inc. to be taken over by Machinify in the forthcoming acquisition
Machinify Acquires Performant Healthcare for $670 Million
Machinify, a leading healthcare intelligence company, has announced its agreement to acquire Performant Healthcare, a provider of technology-enabled payment integrity and analytics services, for approximately $670 million in cash.
Under the terms of the merger, Performant stockholders will receive $7.75 per share, representing a 139% premium over Performant's recent stock price and a 139% premium to its 90-day VWAP. The transaction is expected to close by the end of 2025, after which Performant's shares will be delisted from Nasdaq.
The acquisition combines Machinify's AI-driven payer operating system with Performant's over 40 years of clinical and payment integrity expertise. The strategic move aims to disrupt the $200 billion healthcare payment integrity market by integrating AI automation with Performant’s established analytics and eligibility services. The combined entity is expected to target a reduction of improper healthcare payments by about 40%.
Machinify brings together a fully configurable and content-rich, AI-powered platform along with best-in-class expertise. The company seeks out high-quality growth leaders in carefully selected industry sectors and works intensively with management to build the value of these companies. However, the specific affiliation of Machinify with New Mountain Capital, the acquiring entity in this transaction, is not directly documented in the available information.
The proposed merger may divert management's attention from the Company's ongoing business operations. It may also impact the Company's ability to retain and hire key personnel and maintain relationships with key business partners and customers. Potential litigation relating to the proposed merger may adversely affect the parties to the merger agreement or their respective directors, managers, or officers.
The proxy statement regarding the proposed transaction will be sent to all Performant stockholders and will be available on the SEC's website. Investors and Performant stockholders may obtain free copies of the proxy statement and other relevant documents filed with the SEC by Performant through its website or by written request.
The transaction is expected to close subject to certain conditions, including the receipt of certain regulatory approvals. The failure to satisfy any of these conditions may prevent the merger from being completed. Prior to the closing, Performant is required to operate its business in the ordinary course.
Performant supports healthcare payers in identifying, preventing, and recovering waste and improper payments. The acquisition is being led by New Mountain Capital, though the exact nature of their involvement is not specified in the available information.
The proposed merger may not be completed in a timely manner or at all, which may adversely affect the Company's business and the price of the Company's common stock. Additional information regarding the interests of those persons and other participants in the proposed transaction may be obtained by reading the proxy statement regarding the proposed transaction when it becomes available.
- Machinify, with its newly acquired infrastructure from Performant Healthcare, aims to integrate AI automation with cloud-based solutions for a more secured and efficient finance system in the healthcare business.
- The forthcoming joint entity, post the merger, plans to leverage Performant's established news and analytics services to reduce improper healthcare payments and maintain a competitive edge in the market.
- The established cloud infrastructure, now part of Machinify, will likely enrich the company's offerings, enabling it to provide fresh opportunities for growth in the targeted industry sectors.
