Evolent Health to acquire AI management products and team from Machinify

Evolent Health has entered into an agreement to acquire certain assets of Machinify and the exclusive, perpetual and royalty-free license of Machinify Auth, a software platform that leverages advances in artificial intelligence to increase the clinical quality, speed and consistency of the clinical reviews for all specialty conditions. Evolent plans to integrate the Machinify Auth team, software applications and AI capabilities into its platform. Evolent and Machinify will also enter into a multi-year services agreement to support the success of the acquisition. The acquisition is subject to customary closing conditions. The solution to be acquired, Machinify Auth, functions as a co-pilot for nurses and doctors to reduce clinician workforce time by an average of 55% for complex, manual reviews for a large national payer customer and its provider network. Machinify is a privately held company based in Palo Alto, California. In addition, certain employees of Machinify will be re-badged as Evolent employees upon closing. Lastly, Machinify and Evolent expect to enter into a long-term services agreement at closing to support the development and integration of the platform with Evolent. The acquisition is immaterial to Evolent’s revenue outlook and is estimated to be neutral to Adjusted EBITDA in the first year after closing. This transaction is anticipated to close in Q3.