Skip to content

Article

KKR and Neuberger Berman Provide $2.7B in Preferred Equity to Support New Mountain Capital’s Datavant and SmarterDx Merger

Share on X (opens in a new window) Share on Facebook (opens in a new window) Share on LinkedIn (opens in a new window)
✨ Summary by AI at Octus
New Mountain Capital is securing $2.7 billion in preferred equity from KKR and Neuberger Berman to facilitate the merger of its healthcare technology companies, Datavant and SmarterDx. Each firm is contributing $1.35 billion, divided into senior and junior tranches, to fund the merger. Datavant is expected to achieve approximately $500 million in EBITDA this year, while SmarterDx, though not yet profitable, generates around $150 million in revenue. The merger aims to combine Datavant's healthcare data platform with SmarterDx's revenue cycle management software, enhancing New Mountain's healthcare AI capabilities.

New Mountain Capital is lining up $2.7 billion of preferred equity from KKR and Neuberger Berman to support the merger of two of its healthcare technology portfolio companies, Datavant and SmarterDx, according to sources.

Neuberger Berman and KKR are each providing $1.35 billion of preferred equity, with the two tranches comprising one senior and one junior piece, sources said.

Proceeds will fund the combination of healthcare data platform Datavant and SmarterDx, the revenue cycle management software unit of Smarter Technologies, a healthcare AI firm formed by New Mountain in 2025.

The merger was first reported by Axios on Aug. 5, with the report noting that Datavant was working with JPMorgan to raise about $2.5 billion in debt to restructure its existing facility ahead of the transaction. SmarterDx isn’t yet profitable but generates roughly $150 million in revenue, while Datavant is on track for about $500 million in EBITDA this year, according to the report.

New Mountain acquired New York-based Datavant in 2021, by merging it with its portfolio company Ciox Health in a transaction that valued the combined company at about $7 billion, according to a press release at the time.

The private equity firm invested in SmarterDx in April 2025 and combined it with Access Healthcare and Thoughtful.ai in May of the same year to form Smarter Technologies, an AI-powered healthcare administration and revenue management platform.

As of June 30, Apollo Debt Solutions, Blackstone Private Credit Fund and Blue Owl Capital Corp. were listed as holders of first lien loans to CT Technologies Intermediate Holdings, dba Datavant, according to Octus’ BDC Database. The loans are priced at SOFR+475 bps and mature in September 2031.

In the second quarter of the year, senior direct lending facilities to back leveraged buyouts in the healthcare sector priced at an average of SOFR+510 bps, according to Octus’ Private Credit Dashboard.

New Mountain Capital and Neuberger Berman declined to comment. KKR, Datavant, SmarterDx and Smarter Technologies did not return requests for comment.

This publication has been prepared by Octus Intelligence, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2026 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.