LIVERMORE, Calif., Jan. 30, 2015 (GLOBE NEWSWIRE) -- Performant Financial Corporation (Nasdaq:PFMT) ("Performant") announced today that it has decided to withdraw its proposed public offerings of convertible senior notes and common stock. Proceeds of the financings were intended to fund the purchase price for the acquisition of Premier Healthcare Exchange, Inc. (PHX).
Performant Chief Executive Officer Lisa Im stated, "We continue to believe that Premiere Healthcare Exchange is an exceptional company, the acquisition has very compelling merits, and fits within our strategy of growing in healthcare technology. However, we are not going forward with the previously announced capital raise at levels that are not in the best interests of our stockholders."
About Performant Financial Corporation
Performant helps government and commercial organizations enhance revenue and contain costs by preventing, identifying and recovering waste, improper payments and defaulted assets. Performant is a leading provider of these services in several industries, including healthcare, student loans and government. Powered by their proprietary analytic platform and proprietary workflow technology, Performant also provides professional services related to the recovery effort, including reporting capabilities, support services, customer care and stakeholder training programs meant to mitigate future instances of improper payments. Founded in 1976, Performant is headquartered in Livermore, California.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, that Performant's agreements with CMS and the Department of Education, two of its largest customers, are currently subject to rebidding processes, that transition rules have significantly limited Performant's activity under the existing RAC contract, the high level of revenue concentration among Performant's five largest customers, that many of Performant's customer contracts are subject to periodic renewal, are not exclusive and do not provide for committed business volumes, that Performant faces significant competition in all of its markets, that the U.S. federal government accounts for a significant portion of Performant's revenues, that future legislative and regulatory changes may have significant effects on Performant's business, failure of Performant's or third parties' operating systems and technology infrastructure could disrupt the operation of Performant's business and the threat of breach of Performant's security measures or failure or unauthorized access to confidential data that Performant possesses.. More information on potential factors that could affect Performant's financial condition and operating results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its annual report on Form 10-K for the year ended December 31, 2013, its quarterly report on Form 10-Q for the three months ended September 30, 2014 and other documents and reports subsequently filed by Performant with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release and Performant does not undertake to update any forward-looking statements to conform these statements to actual results or revised expectations.
CONTACT: Richard Zubek Investor Relations 925-960-4988 firstname.lastname@example.orgSource:Performant Financial Corp.