New Mountain Capital, a growth-oriented investment firm, entered a definitive agreement to acquire Machinify, a provider of AI-powered software transforming healthcare payments. Machinify will become a core part of the company recently formed through the merger of The Rawlings Group, Apixio’s Payment Integrity business and VARIS.
Upon closing, David Pierre will lead the combined company as CEO, with Machinify’s founder and CEO Prasanna Ganesan assuming the role of executive vice president and chief product officer and joining the board of directors. Rawlings, Apixio PI and VARIS will maintain their respective legacy sub-brand names.
“The planned combination with Machinify reflects our strategy of utilizing data and AI, coupled with deep domain expertise, to simplify and reduce costs across the healthcare payment process,” 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 enhances efficiencies for payers, providers and patients.”
“We are proud to build on the transformative AI platform that we have developed at Machinify as we take this next important step forward,” Ganesan said. “With the proven track record of Rawlings, Apixio PI and VARIS in delivering exceptional outcomes for blue-chip health plans, we are well-positioned to accelerate our mission of creating a next-generation infrastructure for healthcare administration — one that streamlines operations and fosters greater transparency across the healthcare system.”
“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,” Matt Holt, managing director and president, private equity at New Mountain Capital, said. “We are confident that this business will disrupt the status quo and improve outcomes for all stakeholders.”
The transaction is supported by an existing investor group of private equity and venture capital led by New Mountain Capital, Eir Partners, Battery Ventures, Ardan Equity Partners, Matrix Partners and GV.
The merger is subject to regulatory approvals and is expected to close in the first quarter of this year. Deutsche Bank served as financial advisor and Cooley served as legal advisor to Machinify. J.P. Morgan Securities served as financial advisor and Ropes & Gray served as legal advisor to New Mountain Capital.
