US-based technology firm Inovalon has agreed to acquire healthcare information technology company, Ability Network, for around $1.2bn in cash.
Based in Minneapolis, Ability Network is a cloud-based Software-as-a-service (SaaS) technology firm, which simplifies administrative and clinical complexities of healthcare sector.
The company serves customers both directly and through strategic partners, including revenue cycle, electronic health record (EHR) and practice management vendors and other software and service companies.
The firm’s myABILITY software platform is an integrated set of cloud-based applications designed for providers and payers to enhance their core connectivity, administrative, clinical, quality analysis, management and performance improvement capabilities.
Currently, the platform is used by over 44,000 acute, post-acute and ambulatory point-of-care provider facilities.
Inovalon said the myABILITY platform will compliment its ONE platform to provide better services for the existing payer, pharma and device client-base.
Once the deal is concluded, the combination of both firms will create a vertically integrated cloud-based platform to provide real-time and value-based care for payers and manufacturers.
Ability Network's EVP and CFO Jamison Rice will serve as the company's general manager & divisional president and join Inovalon’s executive leadership team reporting to Inovalon’s CEO, Keith Dunleavy.
Ability chairman & CEO is expected to join Inovalon’s board of directors and serve as an advisor on the companies integration.
Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in April this year.
Dunleavy said: “The addition of Ability's innovative platform-based applications, extensive provider client base and connectivity, and efficient, high-volume distribution channel will enable Inovalon to deliver increasingly differentiated value to both Ability’s provider customers and Inovalon’s established client base, as well as drive significant growth and accretive financial performance for our shareholders in 2018 and going forward.”
Ability Network chairman and CEO Mark Pulido said: “Inovalon and Ability share important commonalities – a common mission to enable data-driven improvements in healthcare, and a common technology vision focused on cloud-based platform architecture, real-world data, connectivity, and a recurring subscription-based model.”
Image: Inovalon to acquire healthcare information technology company, Ability Network. Photo: courtesy of PinkBlue / FreeDigitalPhotos.net.