SAN MATEO, Calif. & MT. PLEASANT, S.C.--(BUSINESS WIRE)--Apixio, an artificial intelligence company that supports health plans and provider groups in their delivery of value-based care, announced today that it has completed its merger with ClaimLogiq, a healthcare technology business that delivers savings for health plans by reducing claim errors prior to payment. Together, the combined entity will be branded as Apixio.
The merger creates a leading healthcare data and analytics company powered by an advanced AI-driven platform that applies both clinical and financial data to minimize reimbursement inaccuracies, reduce total cost of care, and optimize the patient experience for health plans and provider groups. The merger is being supported by New Mountain Capital ("New Mountain”), a leading growth-oriented investment firm with more than $37 billion in assets under management. Eir Partners, ClaimLogiq’s first institutional investor, has backed ClaimLogiq since 2021 and will remain a significant minority investor in the combined company. The transaction closed on June 13th, 2023, and terms of the transaction were not disclosed.
Together, the combination of Apixio and ClaimLogiq’s critical infrastructure, artificial intelligence, and proprietary healthcare data will accelerate the shift toward outcomes-based reimbursement models by reducing costs, minimizing claim adjudication errors, and optimizing the delivery of both payments and care. The combined company will have more than 280 employees and the experienced leadership teams of Apixio and ClaimLogiq will come together to continue to develop innovative solutions for their payer and risk-bearing provider customers. Apixio Chief Executive Officer Sachin Patel will become Chief Executive Officer of the combined entity, and ClaimLogiq Chief Executive Officer Tom Magnotta will become President and Chief Operating Officer.
“With the completion of Apixio’s merger with ClaimLogiq, our combined platform will serve as a compelling offering for the nation’s leading health plans and provider groups,” commented Sachin Patel. “Apixio’s healthcare expertise and cutting-edge application of natural language processing enables us to improve the clinical, operational and financial outcomes for our customers and the patients they serve.”
“We are excited to come together with Apixio as we build the nation’s leading connected care platform,” added Tom Magnotta. “By leveraging the unique technology capabilities, rich data assets and advanced analytical models of two innovative healthcare technology companies, Apixio’s combined solution suite allows us to provide a broader offering to our healthcare partners.”
“We view the merger of Apixio and ClaimLogiq as creating a truly differentiated player in the healthcare technology industry,” said Matt Holt, Managing Director and President, Private Equity at New Mountain Capital. “We intend to continue investing in the combined company’s existing artificial intelligence capabilities while also launching new products with the aim of building the leading ‘connected care’ platform in the marketplace, enabling health plans’ and provider groups’ transition to value-based care.”
“Since our original investment in ClaimLogiq, applying leading technology to reduce cost and improve outcomes for our customers has been core to our thesis,” added Brett Carlson, Managing Partner at Eir Partners. “We have been impressed by Apixio’s capabilities and we believe that the combined company will help payers and risk-bearing providers be on the forefront of innovation in healthcare.”
J.P. Morgan Securities LLC served as financial advisor to New Mountain Capital and Ropes & Gray LLP served as its legal counsel.
About Apixio
Apixio is a leading technology and analytics platform offering risk adjustment and other value-based care solutions for health plans and risk-bearing providers through a highly scalable technology platform. By leveraging its proprietary artificial intelligence and machine learning technology, Apixio develops high-fidelity patient health profiles to streamline the risk adjustment process for payers and risk-bearing providers and thereby improve the clinical, operational and financial outcomes for its healthcare partners. For more information, visit https://www.apixio.com/.
About ClaimLogiq
ClaimLogiq is a leading technology-enabled payment integrity provider that delivers savings for health plans by reducing errors in complex claims prior to payment. ClaimLogiq offers a valuable service through its ability to process complex, unstructured claims data quickly and accurately by leveraging its proprietary software platform to reduce claims processing times. ClaimLogiq offers a flexible delivery model whereby customer can use its technology platform to enable their own internal payment integrity teams to process complex claims in-house or work with ClaimLogiq’s on a fully outsourced basis. For more information, visit https://claimlogiq.com/.
About New Mountain Capital
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit, and net lease real estate funds with more than $37 billion in assets under management. New Mountain seeks out what it believes to be the highest quality leaders in carefully selected "defensive growth" industry sectors and works intensively with management to build the value of these companies. Additional information about New Mountain Capital is available at www.newmountaincapital.com.
About Eir Partners
Eir Partners is a Miami-based private equity company focused exclusively on healthcare technology and tech enabled services. Eir has completed or partnered on over $5.5 billion in healthcare technology transactions across payer, provider, employer and pharma tech since inception in 2015. The firm has been involved in several large-scale health tech companies. Targeted stages of investment include growth equity through control buyouts. For more information about Eir, visit www.eirpartners.com.
