Performant Healthcare Inc. to Be Acquired by Machinify in $670 Million Deal

In a significant development for the healthcare sector, Performant Healthcare Inc. (PHLT), a key player in technology-enabled payment integrity and analytics services, has agreed to be acquired by Machinify, a prominent healthcare intelligence company. This acquisition, valued at approximately $670 million, marks a pivotal moment for Performant, which has seen its stock soar by 230% over the past three months.

Acquisition Details

The acquisition deal, announced on August 1, 2025, involves Machinify, a portfolio company of New Mountain Capital, acquiring Performant for $7.75 per share in cash. This price represents a substantial premium of about 139% over Performant’s 90-day volume-weighted average price (VWAP) of $3.25 per share, as of July 31, 2025. The transaction is expected to close soon, bringing a new chapter for Performant’s operations and strategic direction.

Financial Performance and Strategic Shift

In a separate announcement, Performant disclosed its preliminary financial results for the second quarter of 2025. The company anticipates reporting revenues of approximately $37.8 million, net income of around $2.1 million, and adjusted EBITDA of about $6.2 million. However, in light of the acquisition, Performant has decided to withdraw its previously issued full-year 2025 guidance and cancel its second quarter results conference call, originally scheduled for August 5, 2025.

The decision to be acquired by Machinify follows a comprehensive review of strategic alternatives by Performant’s board of directors and executive leadership team. CEO Simeon Kohl highlighted the company’s journey from addressing complex payment integrity challenges to becoming a market leader in healthcare solutions. He expressed pride in the team’s achievements and the value delivered to clients and shareholders.

Market Reaction

The news of the acquisition has been met with enthusiasm in the market, as evidenced by Performant’s shares more than doubling on the announcement day. This surge reflects investor confidence in the strategic fit between Performant and Machinify, as well as the potential for enhanced growth and innovation in the healthcare intelligence space.

Conclusion

As Performant Healthcare Inc. transitions into a new phase under Machinify’s ownership, stakeholders are optimistic about the synergies and opportunities that this merger will bring. The acquisition underscores the dynamic nature of the healthcare industry and the ongoing consolidation trend as companies seek to leverage technology and intelligence to drive better outcomes.