Inovalon Nears a $4.6bn Sale to Nordic Capital and Insight Partners

Aug 19, 2021 | News

Insight Partners and Nordic Capital agreed to buy health-care software company Inovalon Holdings in a deal valuing the company at $6.4bn.

Inovalon investors will get $41 per share in cash, the company said in a statement on Thursday, confirming an earlier Bloomberg News report. Inovalon’s Chief Executive Officer Keith Dunleavy, 22C Capital and other stockholders also joined the consortium. The deal is subject to approval from investors and U.S. antitrust regulators and may close later this year or in early 2022.

A sale would be the latest take-private transaction in a busy year for dealmaking. New York-based growth equity firm Insight Partners, which is known for investing in private technology companies, is becoming more active in acquisitions of listed companies. That included participating in the buyout of CoreLogic this year. It is also a backer of health-care technology companies such as Eden Health, and Clarify Health, according to its website.

It would also mark the largest acquisition to date for Stockholm-based Nordic Capital, according to data compiled by Bloomberg.

 

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Shares in Inovalon closed at $37.22 a share Wednesday, giving the company a market value of $5.8bn. Including debt, the takeover values the company at $7.3bn.

At $41 a share, the private equity firms are paying a premium of 10% above Wednesday’s closing price and about 25% above where the shares were trading before Bloomberg News first reported Inovalon’s advanced sales talks in July.

Inovalon, based in Bowie, Maryland, went public in 2015 in an initial public offering that raised about $685m. The company’s software is used to aggregate and analyze health-care data from researchers and providers, according to its website.

Its database includes information from more than 1m physicians, 580,000 clinical facilities and 336m patients. The software is used by all of the top 25 U.S. health plans as well as the world’s top 25 pharmaceutical companies, the company said.

Source: Yahoo finance 

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