In a strategic move signaling a significant shift in healthcare payment technology, New Mountain Capital’s portfolio company Machinify is set to acquire Performant Healthcare for approximately $670 million. This deal isn’t just another private equity transaction—it’s a clear indicator of where healthcare IT is headed and what savvy investors should watch closely.
Performant shareholders are poised to receive $7.75 per share, a staggering 139% premium over the recent 90-day average price of $3.25 as of July 31, 2025. Such a premium reflects not only confidence in Performant’s business but also the immense value New Mountain Capital sees in integrating Performant’s healthcare payment integrity expertise with Machinify’s cutting-edge payer operating system.
Matt Holt, Managing Director and Private Equity President at New Mountain Capital, encapsulated the vision succinctly: “The future of the US healthcare system requires modernization of IT infrastructure, including patient-centric data networks.” This isn’t just corporate speak. It highlights a growing trend in healthcare investment—shifting from fragmented, legacy IT systems towards integrated platforms that emphasize transparency, efficiency, and patient outcomes.
Machinify CEO David Pierre added a crucial layer to this narrative, emphasizing their mission to build a “modern healthcare payments intelligence platform” focused on accuracy and transparency. By combining Machinify’s technology with Performant’s trusted domain expertise and data assets, the combined entity aims to serve a broader client base, including major government payers like the Centers for Medicare and Medicaid Services (CMS), as well as state and local governments. This signals a move towards streamlining public healthcare payments, potentially reducing administrative costs dramatically while improving payment quality and timeliness.
Why should investors care? The healthcare payment integrity market is poised for explosive growth driven by increasing regulatory scrutiny, rising healthcare costs, and the urgent need for digital transformation. According to a 2024 report by Grand View Research, the global healthcare fraud detection and prevention market is expected to reach $6.3 billion by 2030, growing at a CAGR of over 15%. The Machinify-Performant merger positions New Mountain Capital to capitalize on this trend by creating a powerhouse platform that addresses these critical pain points.
But here’s the insight you won’t find elsewhere: This acquisition signals a broader strategic play by New Mountain Capital to build an interconnected healthcare ecosystem. Beyond just payment integrity, the integration of data networks and payer systems could pave the way for predictive analytics in care management, fraud prevention, and even value-based care models. Investors should watch for follow-on acquisitions or partnerships from New Mountain Capital that expand this ecosystem—potentially targeting companies specializing in AI-driven diagnostics, patient engagement platforms, or blockchain-based health records.
For financial advisors and investors, the takeaway is clear: Healthcare IT is no longer a back-office cost center; it’s a critical growth sector with transformative potential. Portfolio diversification strategies should increasingly consider private equity or public equities in healthcare IT firms that emphasize interoperability, data analytics, and government contracting. Moreover, as government payers seek more efficient payment solutions, companies like Machinify-Performant stand to benefit from long-term, stable revenue streams tied to public healthcare budgets.
Looking ahead, regulatory approval and shareholder consent are expected by year-end, but the real story will be in how quickly the combined entity can execute integration and scale its offerings. Investors should monitor quarterly earnings and client acquisition announcements closely, as these will be early indicators of the merger’s success and the platform’s market penetration.
In summary, this $670 million deal is more than a headline—it’s a bellwether for the future of healthcare payment systems and a call to action for investors to rethink their exposure to healthcare IT innovation. As New Mountain Capital builds this ecosystem, the companies that can deliver both efficiency and improved patient outcomes will be the winners in a healthcare landscape increasingly defined by data and technology.
Sources:
– Grand View Research, Healthcare Fraud Detection and Prevention Market Report, 2024
– Statements from New Mountain Capital and Machinify executives, July 2025
Actionable Advice:
– Investors should evaluate exposure to healthcare IT and payment integrity firms with strong government ties.
– Advisors might consider thematic funds or private equity vehicles focused on healthcare digital transformation.
– Watch for emerging technologies that complement payment integrity platforms, such as AI and blockchain, as potential next investment frontiers.
Stay ahead of the curve—this is where healthcare finance innovation is headed, and the Machinify-Performant deal is just the opening act.
Source: Machinify to acquire Performant Healthcare for $670m