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New Mountain Capital to acquire healthcare tech firm Machinify
Machinify will become a core part of the company recently formed through the merger of The Rawlings Group, Apixio’s payment integrity business and healthcare intelligence firm Varis.
10 January 2025
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Aayush Sood
At the closing of the deal, 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
The merger is expected to close in the first quarter of this year
Based in New York, New Mountain has over $55 billion in assets under management
New Mountain Capital has agreed to purchase Machinify, a company based in Palo Alto, California, that provides artificial intelligence-driven software for healthcare payments. The financial details of the deal were not disclosed.
Machinify will become a central component of the company formed by merging The Rawlings Group, Apixio’s payment integrity division, and the healthcare intelligence firm Varis. This newly combined company will be named Machinify.
Upon the deal's closure, David Pierre will take the role of CEO for the combined company, while Machinify’s founder and CEO, Prasanna Ganesan, will become the executive vice president and chief product officer. Rawlings, Apixio PI, and Varis will retain their individual legacy sub-brand names.
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"New Mountain has long believed in the transformative potential of technology to enhance efficiency in healthcare payments, and we see the merged company as the platform to achieve this," stated Matt Holt, managing director and president of private equity at New Mountain Capital.
"We are confident that this business will challenge the current norms and improve outcomes for all parties involved."
The transaction is backed by an existing group of private equity and venture capital investors, including New Mountain Capital, Eir Partners, Battery Ventures, Ardan Equity Partners, Matrix Partners, and GV.
The merger is anticipated to be finalized in the first quarter of this year. Deutsche Bank acted as the financial advisor, and Cooley LLP served as the legal advisor to Machinify. J.P. Morgan Securities LLC was the financial advisor, and Ropes & Gray LLP was the legal advisor to New Mountain. Based in New York, New Mountain manages over $55 billion in assets.
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