Machinify Plans $670M Acquisition of Performant Healthcare by 2025

Performant Healthcare, Inc., a provider of technology-enabled payment integrity and analytics services, has agreed to be acquired by healthcare intelligence company Machinify for approximately $670 to $700 million. Under the merger agreement, Performant stockholders will receive $7.75 per share in cash, representing a premium of about 139% over the 90-day volume-weighted average price, with the transaction expected to close by the end of 2025, pending customary conditions and regulatory approvals. Following the acquisition, Performant's shares will be delisted from Nasdaq. The merger, unanimously approved by Performant's board, aims to combine Machinify's healthcare intelligence platform with Performant's expertise to improve payment accuracy and reduce administrative costs, benefiting stakeholders such as the Centers for Medicare and Medicaid. Performant anticipates reporting second quarter 2025 revenues of approximately $37.8 million, net income around $2.1 million, and adjusted EBITDA of about $6.2 million, though it has withdrawn its full-year 2025 guidance due to the transaction. Analyst perspectives show mixed views, with some noting financial challenges including inconsistent profitability, while others maintain a Buy rating on the stock.