An investor consortium led by Nordic Capital and Insight Partners plans to acquire health software company Inovalon. They announced on Thursday that they would take the company private in an all-cash transaction, valued at $7.3 billion.
Inovalon (NASDAQ: INOV), located in Bowie, Maryland, produces software to aggregate and analyze data in real time. Among its clients are 25 of the world’s largest pharmaceutical companies, as well as many of the largest health plans and hospital systems in the United States. In the most recent quarter, it brought in revenue of $190.4 million.
Shareholders will receive $41 in cash per share, which is 25% higher than Inovalon’s share price on July 26 the day before Bloomberg News The company is under discussion. After reaching an agreement, Inovalon’s stock price rose 9% last week.
A group of independent directors have been looking for strategic alternatives and negotiating the terms of the agreement. They passed the transaction unanimously, but there are more steps to complete. Most of Inovalon’s shareholders must also approve it, and also need to obtain antitrust approval.
Inovalon’s CEO, Dr. Keith Dunleavy, will continue to lead the company as a member of the board of directors and become a “major shareholder”. He said that the two companies’ experience in software, data and healthcare is a key part of the deal.
“This, together with their long-term focus, operational experience and international vision, is an exciting combination that we see before our eyes,” he said in a press release.
The transaction will also be consistent with Nordic Capital’s recent investment.Earlier this year, it Acquired Advanz Pharma, a specialty pharmaceutical company $846 million, and Become a minority shareholder The head of the dermatology company LEO Pharma.
The acquisition is expected to be completed later this year or early 2022.
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