A group of private equity buyers has announced an agreement to acquire Inovalon, taking the publicly traded digital health company private. The group is led by Nordic Capital and joined by Insight Partners as lead co-investor, with 22C Capital, Inovalon founder/Chief Executive Officer Keith Dunleavy and certain Class B stockholders of Inovalon joining in on the investment.
The deal is valued at $7.3 billion in an all-cash transaction. Inovalon stockholders will receive $41.00 per share in cash for each share of Class A Common Stock or Class B Common Stock. The company provides cloud-based platforms empowering data-driven healthcare. Through the Inovalon ONE Platform, it brings 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 impact at the point of care.
Upon completion of the transaction, Inovalon will become a private company with greater flexibility to focus on strategies that drive innovation and global market development. Keith Dunleavy, M.D., will continue to be a substantial shareholder in the company, serve on the Board of Directors and lead Inovalon as CEO. The company will maintain its headquarters in Bowie, Maryland.
J.P. Morgan Securities LLC is the financial advisor to Inovalon and Latham & Watkins LLP is the legal advisor and the Special Committee of the Board of Directors. Evercore is the financial advisor to the Special Committee. Goldman Sachs is the lead financial advisor to Nordic Capital and Insight Partners. Citigroup is also advising Nordic Capital and Insight Partners. Kirkland & Ellis LLP is the legal advisor. Willkie Farr and Gallagher LLP is legal advisor to Insight.
The transaction is expected to close in late 2021 or early 2022.
