Tuesday, August 25, 2015
Cloud-based data company Inovalon Holdings will acquire D.C. health research and advisory firm Avalere Health in a deal worth $140 million, the companies announced Monday.
The move will enable Bowie-based Inovalon (Nasdaq: INOV) to expand into the pharmaceutical market and fuel growth in the use of big data analytics at life sciences companies, officials said. The deal is expected to close Sept. 1.
Avalere, which provides advisory services to more than a dozen top pharmaceutical companies, will bring more than 200 pharma and life sciences clients, officials said in a statement. Avalere reported $47.1 million in revenue in 2014.
Inovalon offers a data analytics platform to track the efficiency and cost effectiveness of health care services. Walgreens is one of the company's bigger clients. In January, Inovalon raised $600 million in an initial public offering.
Inovalon officials said they believe the acquisition will allow them to expand into a "materially untapped" market of more than $30 billion.
In recent years, Avalere has weighed in on issues such as the impact of health reform on health insurance premiums and soaring costs of specialty drugs. Avalere will operate as a subsidiary of Inovalon and Avalere CEO Dan Mendelson will join Inovalon's executive leadership team.
bizjournals.com
