Inovalon to Acquire Ability Network for $1.2 Billion

March 7, 2018
Inovalon, a healthcare data analytics company, has agreed to acquire privately held Ability Network for $1.2 billion in cash and stock.

Inovalon (Nasdaq: INOV), a healthcare data analytics company, has agreed to acquire privately held Ability Network for $1.2 billion in cash and stock.

Bowie, Md.-based Inovalon, which went public and raised $600 million in February 2015, identifies gaps in care, quality, data integrity and financial performance for health plans, accountable care organizations, hospitals, physicians and pharma/life-sciences researchers.

The company said the acquisition would create a “vertically integrated leader in cloud-based enablement of data-driven, value-based care.” It will gain access to the 44,000 acute, post-acute and ambulatory customers on Minneapolis-based Ability’s platform, which has both administrative and clinical tools. Ability was founded in 2000 and has grown organically and through acquisition.

 In a press release, Inovalon said data and analytics brought to the patient’s point-of-care within the clinician work-flow would enable high-value applications of data sought after by its customers: health plans, employers, pharmaceutical companies, medical device manufacturers, and diagnostic companies.  “Concurrently, acute, post-acute, and ambulatory care providers are eager to have access to deeper data, more advanced analytics, data-driven best-practices, clinical care protocols and decision support, and value-based tools to empower them to better succeed in a marketplace asserting growing cost pressures, outcomes expectations, and increasingly complex contract structures upon them. The capabilities achieved through the combination of Inovalon and Ability will empower a highly symbiotic ecosystem and a resulting value that is much greater than the sum of the parts.”

In 2015 Inovalon acquired Avalere Health Inc., a provider of data-driven advisory services and business intelligence solutions to the pharmaceutical and life sciences industry.

In its 2017 fiscal results released in February, Inovalon reported revenue of $449.4 million, an increase of 5 percent from $427.6 million for 2016. Net income for 2017 was $34.8 million or 24 cents per share compared with $27.1 million or 18 cents per share for 2016.

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