Nordic Capital Agrees to Acquire Inovalon in $7.3 Billion Deal

Inovalon, a provider of healthcare data analytics platforms, announced that it has entered into a definitive agreement to be acquired and taken private by an equity consortium led by Nordic Capital in an all-cash transaction with an enterprise value of approximately $7.3 billion.

Others in the acquiring group include Insight Partners, as lead co-investor, 22C Capital, Inovalon founder and Chief Executive Officer Keith Dunleavy, M.D., and certain Class B stockholders of Inovalon.

Inovalon stockholders will receive $41.00 per share in cash for each share of Class A or Class B common stock.

Fredrik Näslund, Partner, Nordic Capital Advisors, said, “As data-driven insights become even more important in improving healthcare, Nordic Capital and its co-investors are committed to supporting Inovalon in continuing to deliver high-value solutions to customers and look forward to partnering with Keith and the Inovalon team in this next phase of the Company’s growth journey.”

Inovalon, which went public in 2015, raising $600 million through an IPO, collects and analyzes health data to provide real-time information to researchers, pharmacy organizations, and other life sciences companies.

The transaction is expected to close in late 2021 or early 2022, subject to the satisfaction of customary closing conditions. Upon completion of the transaction, Inovalon will become a private company.

“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,” said Keith Dunleavy, M.D., Inovalon’s founder, chief executive officer, and chairman of the board.”

J.P. Morgan Securities is serving as financial advisor to Inovalon, and Latham & Watkins is serving as legal advisor to Inovalon and the Special Committee of the Board of Directors of Inovalon. Evercore is serving as financial advisor to the Special Committee. Goldman Sachs is acting as the lead financial advisor to Nordic Capital and Insight Partners. Citigroup advises Nordic Capital and Insight Partners, and Kirkland & Ellis is serving as a legal advisor. Willkie Farr and Gallagher served as legal advisors to Insight Partners.

One hundred thirty-six digital health companies were acquired in the first half of 2021 compared to 83 in 1H 2020.