News

Inovalon Receives $7.3 Billion Buyout Offer From Nordic Capital Led Equity Consortium

August 20, 2021 (Investorideas.com Newswire) Inovalon Holdings Inc. shares traded 8% higher after the cloud healthcare technology platform firm reported it entered into an agreement to be acquired by an equity consortium led by Nordic Capital and Insight Partners for $41.00 per share in cash.

image

Cloud platform healthcare technology company Inovalon Holdings Inc. (INOV:NASDAQ), today announced that “it has entered into a definitive agreement to be acquired by an equity consortium led by Nordic Capital and joined by Insight Partners, as lead co-investor, 22C Capital, and Inovalon founder and CEO Keith Dunleavy, M.D. and certain Class B stockholders of Inovalon in an all-cash transaction with an enterprise value of approximately $7.3 billion.”

The company stated that under the terms of the buyout agreement, Inovalon Holdings shareholders will receive $41.00 per share in cash for each Class A or Class B share currently owned. The firm advised that the $41.00 share price represents a 25.3% premium over the closing price of Inovalon’s Class A shares on July 26, 2021.

Inovalon stated that the transaction terms and details were evaluated by independent members of the company’s Board of Directors, who based their decision on the unanimous recommendation from a special committee of independent directors who were tasked with negotiating the terms, conditions, and price.

The firm stated that when the transaction is completed, Inovalon will become a private entity giving it increased flexibility to pursue strategic opportunities to expand its market and innovation. The company indicated that Keith Dunleavy, M.D. will continue to own a significant stake in the company and will serve as CEO and as a board member.

William J. Teuber, Jr., Lead Independent Director of the board and chair of the Special Committee remarked, “Today’s announcement is the culmination of a thorough process of evaluating strategic alternatives and represents a compelling opportunity to deliver immediate and more certain cash value to stockholders at a significant premium…During our evaluation it became clear that not only is the consortium led by Nordic Capital offering our shareholders compelling value, they also have a deep appreciation for Inovalon’s cloud-based platforms and data capabilities, as well as an appreciation for the people, mission, and the value impact of the company.”

Inovalon’s Founder, CEO and Chairman Keith Dunleavy, M.D., commented, “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…We are excited to enter the next chapter in Inovalon’s journey together with such great partners as Nordic Capital, Insight Partners, and 22C Capital.”

“Their 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,” Dr. Dunleavy added.

Fredrik Naslund, Partner, Nordic Capital Advisors stated, “As a leading healthcare and technology investor, Nordic Capital has long admired Inovalon’s leadership across the healthcare ecosystem and its cloud-based tools leveraging advanced data analytics to meaningfully empower its customers and the patients they serve.”

The company advised that that the transaction is expected to close in late 2021 or early 2022 but remains subject to ordinary closing conditions, shareholder approval, and receipt of U.S. antitrust approval.

Nordic Capital was described in the report as a leading private equity company that invests in the areas of healthcare, technology and payments, financial services, and certain industrial and business services. Since inception, Nordic has invested greater than 17 billion euros in about 120 different investments. The firm has offices in Sweden, Denmark, Finland, Norway, the U.K., Germany, and the U.S.

Insight Partners is a global venture capital and private equity firm that invests in high-growth technology and software ScaleUp companies. The report mentions that the firm has raised more than $30 billion in capital commitments and has invested in over 400 companies worldwide.

Inovalon is based in Bowie, Md., and is a provider of data-driven, cloud-based platforms models for the healthcare industry. The company claimed that “its Inovalon ONE(R) Platform brings to the marketplace a national-scale capability to interconnect with the healthcare ecosystem, aggregate and analyze data in real time, and empower the application of resulting insights to drive meaningful impact at the point of care.” The firm stated that virtually anyone who is involved in healthcare can benefit from using its platform’s capabilities. Specific applications are available for health plans, service providers, diagnostic companies, life sciences companies, and pharmacy organizations. The firm provides technology and support to around 500 healthcare organizations. The company’s platforms interface with data integrated from 941,000 physicians, 483,000 clinical facilities, 243 million Americans, and 38 billion medical events.

Inovalon Holdings started off the day with a market capitalization of around $5.8 billion with approximately 156.3 million shares outstanding. INOV shares opened 8.5% higher today at $40.40 (+$3.18, +8.54%) over yesterday’s $37.22 closing price and reached a new 52-week high price this morning of $40.50. The stock traded today between $40.20 and $40.50 per share and closed for trading at $40.32 (+$3.10, +8.33%).

Disclosure:

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Follow Us on StockTwits

BiotechIndustryStocks.com - A Leading Global Investor Website for Biotech Industry Stocks

BiotechIndustryStocks.com – investing ideas in biotechnology stocks, medical technology and life sciences

Like Biotech Stocks? View our Biotech Stocks Directory

Buy a biotech guest post on Investorideas.com

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News

Next Article:

0 %