New York-based investment firm New Mountain Capital has agreed to acquire Machinify, a provider of artificial intelligence (AI)-powered software for healthcare payments.
Financial terms of the acquisition were not disclosed.
Machinify will become part of the newly merged company, which includes The Rawlings Group (Rawlings), Apixio’s Payment Integrity business (Apixio PI), and VARIS.
The combined entity, named Machinify at close, will leverage advanced technology, clinical expertise, and vast data to transform healthcare payments and streamline healthcare administration for all stakeholders.
The company combines a fully configurable, content-rich platform with deep domain expertise. It focuses on creating new solutions that maximise financial outcomes, aiming to reduce healthcare costs.
According to New Mountain Capital, the combined entity will have revenue of more than $500m.
Founded in 2016, Machinify developed a cloud-based data intelligence platform to allow the secure, safe, and transparent deployment of purpose-built AI-powered applications and help optimise the healthcare claims lifecycle.
Its foundational operating system, which also drives Machinify’s Audit and Pay workflows, offers an advanced level of automation, efficiency, and accuracy within the healthcare payments infrastructure.
In June last year, Machinify agreed to divest certain assets and grant a royalty-free license of Machinify Auth to Evolent Health.
New Mountain Capital private equity managing director and president Matt Holt said: “New Mountain has had a longstanding sector thesis around the transformative potential for technology to drive greater efficiency in healthcare payments and we believe that the combined company is the platform to enable this.”
Using Machinify’s AI platform, the combined company will accelerate the shift to an automated, accurate healthcare payment reconciliation paradigm.
The organisation will employ over 2,000 people, serving more than 60 health plans.
David Pierre will be CEO, while Machinify’s Prasanna Ganesan will become executive vice president (EVP), and chief product officer, and join the Board.
Rawlings, Apixio PI, and VARIS will keep their legacy sub-brands.
Pierre said: “Together with Machinify, we will provide a suite of products and services that mitigates the complexities throughout the industry that impact performance and affordability, and enhance efficiencies for payers, providers and patients.”
The transaction is backed by investors including New Mountain Capital, Eir Partners, Battery Ventures, Ardan Equity Partners, Matrix Partners, and GV.
The merger, subject to regulatory approval, is expected to close in Q1 2025.
