Inovalon (Nasdaq: INOV), a technology company providing advanced cloud-based analytics and data-driven intervention platforms to the healthcare industry, is to acquire Avalere Health, Inc., a Washington D.C.-based provider of data-driven advisory services and business intelligence solutions to the pharmaceutical and life sciences industry.
The purchase price was $140m, comprised of $135m of cash and $5m of restricted stock. The trascation closing is expected to occur on or about Tuesday September 1, 2015, subject to the satisfaction of customary closing conditions and antitrust clearance.
The addition of Avalere, with its more than 200 pharma/life sciences clients, is expected to expand Inovalon’s leadership in the broader healthcare marketplace and enable the company to expand its capabilities into an expansive adjacent market.
Avalere, which provides data-driven advisory services to 13 of the top 15 pharma companies, will operate as a subsidiary of Inovalon and CEO Dan Mendelson will join the executive leadership team of Inovalon where he will continue to lead the day-to-day operations of the core business of Avalere.
The company will retain its brand.
Led by Keith Dunleavy, M.D., chief executive officer and chairman of the board, Inovalon combines cloud-based data analytics and data-driven intervention platforms to achieve insight and impact in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape.
The platforms are informed by data pertaining to more than 769,000 physicians, 261,000 clinical facilities, and more than 123 million Americans and used by health plans, ACOs, hospitals, physicians, consumers and pharma/life-sciences researchers.