Machinify Joins Forces with New Mountain Capital for AI-Powered Healthcare Revolution
Deal News | Jan 10, 2025 | Battery Ventures
New Mountain Capital, a prominent investment firm with assets exceeding $55 billion, has entered a definitive agreement to acquire Machinify, Inc., an AI-driven healthcare payment software provider. Founded in 2016, Machinify has developed a cloud-based platform that enhances efficiency, automation, and accuracy in healthcare payments. The acquisition will integrate Machinify into a newly formed entity, born from the merger of The Rawlings Group, Apixios Payment Integrity business, and VARIS. This combined organization will leverage revolutionary technology, clinical expertise, and expansive data to transform healthcare payment processes, aiming to streamline operations and lower costs while serving over 60 health plans. The deal highlights New Mountain's strategic focus on utilizing technology to create cost-effective healthcare systems. The transaction, backed by private equity partners including Battery Ventures and Eir Partners, is projected to close in Q1 2023, following regulatory approvals.
Sectors
- Healthcare Technology
- Private Equity
- Artificial Intelligence
Geography
- United States – The primary firms involved, including New Mountain Capital and Machinify, are based in the United States, which is also the market focus for their healthcare solutions.
Industry
- Healthcare Technology – The article discusses the acquisition of Machinify, which focuses on AI-powered software for healthcare payments, a key aspect of healthcare technology.
- Private Equity – New Mountain Capital, a private equity firm, is leading the acquisition, highlighting the role of private equity in strategic investments within the healthcare sector.
- Artificial Intelligence – Machinify provides AI-driven solutions, emphasizing the use of artificial intelligence in transforming and optimizing the healthcare payment process.
Financials
- $55 billion – Assets under management by New Mountain Capital.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Machinify, Inc. | Target Company | Company | Machinify is an AI-powered software provider dedicated to enhancing healthcare payments. |
| New Mountain Capital, LLC | Bidding Company | Company | New Mountain Capital is a growth-oriented investment firm managing over $55 billion in assets. |
| The Rawlings Group | Other Companies | Company | Involved in the merger forming the new healthcare entity with Machinify. |
| Apixios Payment Integrity Business | Other Companies | Company | Part of the newly merged entity focusing on healthcare payment integrity. |
| VARIS | Other Companies | Company | One of the companies merging with Machinify to form a new healthcare entity. |
| Eir Partners | Investor | Company | An existing investor supporting the transaction. |
| Battery Ventures | Investor | Company | A private equity firm involved in supporting the Machinify acquisition. |
| Ardan Equity Partners | Investor | Company | Part of the investor group backing the acquisition. |
| Matrix Partners | Investor | Company | A venture capital firm supporting the transaction. |
| GV | Investor | Company | Formerly Google Ventures, part of the investor consortium. |
| Deutsche Bank | Financial Advisor to Machinify | Company | Provided financial advisory services for the transaction. |
| Cooley LLP | Legal Advisor to Machinify | Company | Provided legal advisory services for the transaction. |
| J.P. Morgan Securities LLC | Financial Advisor to New Mountain | Company | Advised New Mountain Capital on the financial aspects of the transaction. |
| Ropes & Gray LLP | Legal Advisor to New Mountain | Company | Provided legal advisory services to New Mountain Capital. |
| David Pierre | CEO of Combined Company | Person | Appointed CEO to lead the new company formed after the merger. |
| Prasanna Ganesan | EVP and Chief Product Officer | Person | Founder and CEO of Machinify, transitioning to EVP and CPO role in the merged entity. |
| Matt Holt | Managing Director and President, Private Equity | Person | Involved in the strategic decisions at New Mountain Capital. |