UPDATE 2-Nordic Capital, Insight Partners to buy Inovalon for $6.41 billion

  • 8/19/2021
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(Adds Inovalon background, share move) Aug 19 (Reuters) - Healthcare software maker Inovalon Holdings Inc said on Thursday it had agreed to be taken private for $6.41 billion by a consortium including buyout groups Nordic Capital and Insight Partners. Maryland-based Inovalon, which went public in 2015, collects and analyzes health data to provide real-time information to researchers, pharmacy organizations and other life sciences companies. Inovalon stockholders will receive $41.00 per share in cash for each share of Class A or Class B common stock, representing a 10% premium to the stock’s last closing price. Including debt, the deal is worth about $7.3 billion. The deal comes as Europe’s Nordic Capital is pushing ahead with increasing its investments in the U.S. healthcare sector. In January, Nordic Capital offered to buy Advanz Pharma in a deal that valued the drugmaker at $846 million. U.S.-based Insight Partners, which is known for investing in private technology companies, has also becoming active in buyouts lately. Last year, it bought Swiss data management company Veeam Software and cybersecurity firm Armis in multi-billion dollar deals. Inovalon Chief Executive Officer Keith Dunleavy will continue to serve as its head upon closing of the transaction, which is expected in late 2021 or early 2022. Inovalon’s shares were up 7.7% in premarket trading. J.P. Morgan Securities LLC is the lead financial adviser to Inovalon, while Goldman Sachs is advising Nordic Capital and Insight Partners. (Reporting by Mrinalika Roy in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel) Our Standards: The Thomson Reuters Trust Principles.

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