Inovalon to buy healthcare IT technology company Ability Network for $1.2bn
Inovalon, a healthcare data analytics company will acquire Ability Network, a Minnesota-based healthcare IT technology company for $1.2 billion to create a vertically integrated major in cloud-based enablement of data-driven, value-based care.
Headquartered in Minneapolis, Ability Network provides innovative applications and data analytics to simplify the administrative and clinical complexities of healthcare for both providers and payers.
Ability Network is essentially a cloud-based Software-as-a-service (SaaS) technology company.
The healthcare IT technology company through its myAbility software platform, a set of cloud-based applications designed for healthcare providers, offers core connectivity, administrative, management, performance improvement capabilities, clinical, and quality analysis.
Inovalon acquisition of Ability Network will result in the former gain access to the 44,000 healthcare facilities in which the healthcare IT technology company’s cloud-based software platform offers management and administrative services.
Company announcement. Photo courtesy of Stuart Miles at FreeDigitalPhotos.net.
Commenting on Inovalon acquisition of Ability Network, Keith Dunleavy, CEO of Inovalon, 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.”
As per the transaction terms, Ability Network will receive $1.1 billion in cash and will be issued $100 million worth Inovalon shares.
Mark A. Pulido – chairman and CEO of Ability Network, commenting on Inovalon acquisition of Ability Network, said that both the companies have a common mission to bring in data-driven enhancements in healthcare, and also a common technology vision centered on cloud-based platform architecture, real-world data, connectivity, and a recurring subscription-based model.
Mark A. Pulido added: “Ability has established a trusted relationship with tens of thousands of provider facilities of all sizes across our nation. Combining our capabilities with the many strengths of the Inovalon ONE Platform will enable significant innovation throughout the healthcare vertical – from the largest of the payers and manufacturers – down to the individual patient’s point of care.”
Inovalon acquisition of Ability Network is anticipated to be completed next month, should it meet customary closing conditions and get regulatory approvals.