SmarterDx Acquisition, Valuation, Funding & Investors

SmarterDx was acquired by New Mountain Capital for $1.3B in April 2025.

SmarterDx acquisition price

$1.3B

Acquired by New Mountain Capital · Apr 2025

Cumulative funding SmarterDx raised

$56M

across 2 funding rounds

Key investors in SmarterDx

  • Floodgate
  • Flare Capital Partners
  • Bessemer Venture Partners
  • Transformation Capital
  • East Post Road Ventures

SmarterDx Overview

About SmarterDx

SmarterDx is a New York-based clinical AI company developing pre-bill review technology for hospitals. The platform analyzes patient discharges to detect missing diagnoses, enhance documentation, recover revenue, and manage claim appeals in the US healthcare system.


Founded

2020

HQ

United StatesNew York City, NY

Status

Acquired

Customer focus

B2B

Revenue model

Subscription

Valuation

$1B (May 2024)

SmarterDx Acquisition

SmarterDx was acquired by New Mountain Capital for $1.3B on 14 April 2025.

Before the acquisition SmarterDx had raised $56M across 2 funding rounds.

New Mountain Capital, a growth-oriented investment firm with over $55 billion in assets under management, announced a strategic investment in SmarterDx in April 2025, with the transaction expected to close in Q2 2025. SmarterDx is a clinical AI platform specializing in revenue cycle management and revenue integrity for health systems, using proprietary machine learning and clinical reasoning to identify overlooked billing codes, reduce revenue leakage, and accelerate reimbursement. The company had achieved impressive traction by the time of the investment, serving over 40 leading health systems across 180 hospital sites with a Day One 5:1 ROI and delivering an average of $2 million in net new annual revenue per 10,000 patient discharges, while earning recognition as one of Modern Healthcare's 2024 Best in Business Startups. The investment supported SmarterDx's next phase of growth and product innovation, with the goal of accelerating its technology roadmap and developing complementary solutions across the revenue cycle. In May 2025, New Mountain subsequently combined SmarterDx with two other portfolio companies—Thoughtful.ai and Access Healthcare—to form Smarter Technologies, a comprehensive AI-driven revenue cycle management platform processing over 400 million transactions annually and managing over $200 billion in combined revenue for more than 200 clients, including 60+ hospitals and health systems.

SmarterDx acquisition details
AcquirerDateTypePrice
  • New Mountain Capital
14 Apr 2025PE buyout$1.3B

SmarterDx Valuation

SmarterDx is currently valued at $1B, based on its Series B in May 2024.

The $50M round was led by Transformation Capital, with participation from Flare Capital Partners, Bessemer Venture Partners and Floodgate.

SmarterDx valuation by funding round

SmarterDx valuation by funding round
DateStageValuation
May 2024Series B$1B

SmarterDx Funding History

SmarterDx has raised a total of $56M across 2 funding rounds.

SmarterDx's first fundraising round was a $6M seed round in April 2022. The most recent completed round was a $50M Series B in May 2024.

SmarterDx funding rounds

SmarterDx funding rounds
DateStageInvestorsRaisedValuationDeal Summary
May 2024Series BTransformation Capital (lead); Flare Capital Partners; Bessemer Venture Partners; Floodgate$50M$1BSmarterDx is a clinical AI company specializing in revenue integrity and care quality for hospitals and health systems. Its platform uses AI to analyze patient clinical journeys, processing over 30,000 data points per chart to identify revenue integrity gaps and improve documentation accuracy. The company implements quickly, offers risk-free ROI, and serves large U.S. hospitals with 100% client retention, 5:1 ROI, and 98 KLAS satisfaction score. It recently launched SmarterDenials, an AI solution for payer denial appeals. On May 14, 2024, SmarterDx raised $50 million in a Series B funding round led by Transformation Capital, with participation from Bessemer Venture Partners, Flare Capital Partners, and Floodgate. This brought total funding to $71 million across rounds, including prior seed and Series A. Funds support product innovation, new data integrations, algorithm refinement, and market expansion. The revenue cycle management market is highlighted amid $4.5 trillion U.S. healthcare spend, with SmarterDx targeting a $1.5-2.0B TAM for large acute care hospitals.
Apr 2022SeedFlare Capital Partners (lead); Floodgate (lead); East Post Road Ventures$6M--

Who has invested in SmarterDx?

5 investors have backed SmarterDx across its funding rounds, including Floodgate, Flare Capital Partners, Bessemer Venture Partners, Transformation Capital and East Post Road Ventures.

Lead investors include Transformation Capital, Flare Capital Partners and Floodgate.


SmarterDx Investors

Investors in SmarterDx by funding rounds participated
InvestorHQRoundsRoleFirst check
Flare Capital PartnersUnited StatesBoston, MA2LeadApr 2022
FloodgateUnited StatesSan Francisco, CA2LeadApr 2022
East Post Road VenturesUnited StatesUnited States1ParticipantApr 2022

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SmarterDx Competitors

SmarterDx competitors include listed companies like Craneware and Waystar, and private ones like infiBond, Vantaca, MasterControl and Scribe.

Public and private companies comparable to SmarterDx
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
CranewareUnited KingdomUnited KingdomPublicly listed$206M$59M$589M2.7x
WaystarUnited StatesUnited StatesPublicly listed$1.1B$390M$5.1B5.2x
infiBondIsraelTel AvivPrivate--$1.3B-
VantacaUnited StatesWilmington, DEPrivate--$1.3B-
MasterControlUnited StatesSalt Lake City, UTPrivate$100M-$1.3B13.0x
ScribeUnited StatesSan Francisco, CAPrivate$15M-$1.3B-

SmarterDx Public Comps

SmarterDx is no longer listed, but its public comps include U.S. Physical Therapy, Arcs Co, EverCommerce, BigBear.ai, PHC Holdings, Optasia, PCITECH, Vitec Software, iFLYHealth and Indegene.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
U.S. Physical Therapy$781M$110M2.5x2.3x17.5x18.9x
Arcs Co$4B$185M0.2x0.2x4.8x4.9x
EverCommerce$589M$128M3.0x2.9x13.7x9.5x
BigBear.ai$128M($295M)8.3x7.6x(3.6x)(27.8x)
PHC Holdings$2.3B$320M1.0x1.0x7.2x6.5x
Optasia$265M$79M4.3x3.6x14.5x9.1x
PCITECH$1.5B$53M0.8x0.9x24.1x-
Vitec Software$371M$151M3.7x3.5x9.1x9.0x

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Common questions about SmarterDx

When was SmarterDx founded?SmarterDx was founded in 2020.
Where is SmarterDx headquartered?SmarterDx is headquartered in New York City, NY, United States.
Is SmarterDx publicly listed?No, SmarterDx was acquired by New Mountain Capital in April 2025.
Who acquired SmarterDx?SmarterDx was acquired by New Mountain Capital in April 2025.
How much was SmarterDx acquired for?SmarterDx was acquired for $1.3B in April 2025.
What is SmarterDx's valuation?SmarterDx was last valued at $1B in its Series B in May 2024.
How much funding has SmarterDx raised?SmarterDx has raised $56M across 2 funding rounds.
What was SmarterDx's last funding round?SmarterDx's last funding round was a $50M Series B in May 2024, led by Transformation Capital.
Who are SmarterDx's investors?SmarterDx's investors include Flare Capital Partners, Floodgate, East Post Road Ventures, Bessemer Venture Partners and Transformation Capital.
Which companies are comparable to SmarterDx?Companies comparable to SmarterDx include Craneware, Waystar, infiBond, Vantaca, MasterControl and Scribe.

See companies similar to SmarterDx

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