An equity consortium led by Nordic Capital and including Insight Partners has agreed to acquire healthcare software maker Inovalon in a deal valued at $7.3bn.
Under the terms of a definitive agreement signed by the companies, Inovalon stockholders will get $41 per share in cash, representing a 25.3% premium more than the closing price of Inovalon Class A Common Stock.
Inovalon provides Cloud-based platforms to empower data-driven healthcare and will maintain its headquarters in Bowie, Maryland, US, upon completion of the transaction.
Inovalon ONE Platform is used to aggregate and analyse healthcare data from researchers and providers in real time.
This helps to improve operational transparency, clinical quality metrics, risk-score accuracy, patient engagement, outcomes and economic performance.
Subject to the satisfaction of customary closing conditions that include approval from stockholders and US antitrust regulators, the transaction is expected to be concluded late this year or early next year.
Inovalon will become a private company after the deal’s completion and will have the flexibility to focus on strategies to improve innovation and global market development.
Inovalon founder, CEO and board chairman Keith Dunleavy said: “For more than two decades, Inovalon has developed technologies that enable the connectivity, aggregation, and analysis of healthcare data to empower better clinical outcomes and economics across the healthcare ecosystem.”
He adds, “[Nordic Capital and Insight Partners’] significant experience in the areas of software, data, and healthcare is key. This, together with their longer-term focus, operational experience, and international perspective, is an exciting combination for what we see in front of us.”
For the transaction, JP Morgan Securities is serving as financial advisor and Latham & Watkins as legal advisor to Inovalon.
Goldman Sachs is serving as lead financial advisor and Kirkland & Ellis is acting as legal advisor to Nordic Capital and Insight Partners.