The Inovalon ONE Platform is an integrated cloud-based platform that consists of up to 100 individual technology toolsets and deep data assets that support the operationalisation of large-scale and data-driven healthcare initiatives

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Inovalon will run as a private company. (Credit: Adam Radosavljevic/Pixabay)

Nordic Capital-led equity consortium has agreed to acquire Inovalon, a provider of cloud-based platforms for healthcare, for an enterprise value of around $7.3bn.

The equity consortium is joined by Insight Partners as lead co-investor, 22C Capital, and Inovalon founder and CEO Dr Keith Dunleavy and certain class B stockholders of Inovalon.

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

Inovalon will run as a private company with main focus on innovation and global market development, upon completion of the deal.

Dunleavy will continue as a significant shareholder in Inovalon and serve as the CEO for the company. The company will continue to operate from its headquarters in Bowie, Maryland.

In a statement, Dunleavy said: “We are excited to enter the next chapter in Inovalon’s journey together with such great partners as Nordic Capital, Insight Partners, and 22C Capital. Their significant experience in the areas of software, data, and healthcare is key.

“This, together with their longer-term focus, operational experience, and international perspective, is an exciting combination for what we see in front of us. We look forward to continuing our mission, together with our greatly appreciated customers, to empower data-driven healthcare.”

The Inovalon ONE Platform is an integrated cloud-based platform, which consists of up to 100 individual technology toolsets and deep data assets that support the operationalisation of large-scale and data-driven healthcare initiatives.

Each technology toolset, which is called module, is said to be informed by the data of billions of medical events within Inovalon’s datasets.

Its technology platforms and analytics are informed by data relating to over one million physicians, 584,000 clinical facilities, 338 million Americans, and 63 billion medical events.

The platform’s modular design allows customers to incorporate the capabilities of the platform with their own internal capabilities or other third-party solutions.

Inovalon supports various customers, including pharmacy organisations, medical device manufacturers, and other healthcare industry constituents.

Subject to the satisfaction of customary closing conditions including the stockholder approvals and the receipt of US antitrust approval, the deal is expected to be completed by the end of this year or early next year.

In March 2018, Inovalon agreed to acquire healthcare information technology company Ability Network for around $1.2bn in cash.