Healthcare IT company Ability Network has been acquired by Inovalon Holdings Inc. (NASDAQ: INOV) for $1.1 billion in cash and $100 million in restricted shares of Inovalon’s Class A stock.
Ability Network, a portfolio company of Summit Partners, makes cloud-based programs, which connect healthcare providers and insurers. It is used at over 44,000 acute, post-acute and ambulatory point-of-care provider facilities. It generates approximately $130 million in revenue.
Inovalon provides advanced cloud-based data analytics and data-driven intervention platforms to the U.S. healthcare industry. On a trailing 12-month basis, it generated revenue of $449.4 million, EBITDA of $75.9 million and net income of $33.8 million.
Inovalon intends to create a vertically integrated cloud platform with Ability’s products, offering real-time, value-based care from payers, manufacturers and diagnostics all the way to the patient’s point of care. With this acquisition, Inovalon will expand the reach of its existing products.