Inovalon (Nasdaq: INOV) said it has has entered into a definitive agreement to acquire Avalere Health, Inc., a provider of data-driven advisory services and business intelligence solutions to the pharmaceutical and life sciences industry.
The addition of Avalere, with its more than 200 pharma/life sciences clients, is expected to significantly expand Inovalon´s leadership in the broader healthcare marketplace and enables the company to expand its industry leading capabilities into an expansive adjacent market.
Avalere will operate as a subsidiary of Inovalon, giving it the ability to offer a powerful combination of business intelligence, cloud-based analytics, and data-driven insights to the pharma/life sciences industry.
Avalere´s 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 purchase price is USD140 million, which is comprised of USD135 million of cash and USD5 million of restricted stock.
Closing is expected to occur on or about Tuesday September 1, 2015, subject to the satisfaction of customary closing conditions and antitrust clearance.