Stock Monitor: Evolent Health Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 9, 2018 / Active-Investors.com has just released a free research report on Inovalon Holdings, Inc. (NASDAQ: INOV). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=INOV as the Company's latest news hit the wire. On March 07, 2018, the Company announced that it has signed an agreement to acquire ABILITY® Network, a leading health IT company, for approximately $1.2 billion in cash and restricted stock. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Evolent Health, Inc. (NYSE: EVH), which also belongs to the Technology sector as the Company Inovalon Holdings. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Inovalon Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=INOV
The transaction, expected to close in April 2018, is subject to customary closing conditions and regulatory approvals. The agreement has been unanimously approved by the Inovalon and ABILITY Boards of Directors and is not subject to a financing contingency or approval by Inovalon's stockholders.
Financial Details of the Acquisition
- The acquisition amount comprises of $1.1 billion in cash and $100 million in restricted Inovalon stock, equating to an acquisition price of 16.6x ABILITY's LTM December 31, 2017, adjusted EBITDA of $72.1 million.
- Inovalon will fund the transaction through 7.6 million shares of restricted equity, cash on hand, and borrowings from a new $980 million term loan for which a commitment has been obtained by Morgan Stanley Senior Funding, Inc. The loan will also be used to pay off and replace the Company's existing credit facility indebtedness.
- The transaction is expected to be accretive to Inovalon's non-GAAP diluted net income per share in 2018.
- The Company will continue to have strong liquidity with approximately $75 million in cash, an untapped $100 million revolver, and a pro-forma net debt to adjusted EBITDA ratio of approximately 4.1x at year-end 2018.
- Inovalon is now expecting 2018 adjusted EPS to range from $0.36 to $0.42, up from prior guidance of $0.31 to $0.35. Revenue is expected to range from $568 million to $593 million, up from prior guidance of $462 million to $482 million.
Strategic Benefits
Inovalon will get access to more than 44,000 healthcare facilities in which Ability's software platform provides connectivity, administrative, clinical, and quality analysis, management, and performance improvement services. The combination of Inovalon and ABILITY creates a vertically integrated cloud-based platform empowering the achievement of real-time, value-based care from payers, manufacturers, and diagnostics all the way to the patient's point of care. The transaction will diversify Inovalon's customer size, customer segments, and customer concentration.
Leadership
Following the transaction, Jamison Rice, EVP, CFO of ABILITY, will serve as General Manager & Divisional President of ABILITY and join Inovalon's executive leadership team, reporting to Inovalon's CEO, Keith Dunleavy. Mark Pulido, Chairman and CEO of ABILITY, will join Inovalon's Board of Directors and serve as an advisor on integration of ABILITY with Inovalon.
Senior management of ABILITY have entered into employment agreements with Inovalon which go into effect pending the closing of the transaction. The 7.6 million shares of restricted Inovalon's equity will be held predominantly by Summit Partners and Bain Capital Ventures as well as by ABILITY's senior management, and will remain restricted from sale or transfer.
Inovalon's Last Acquisition Deal
The Company announced its last acquisition agreement in October 2016. Inovalon completed the acquisition of Creehan Holding Co., Inc., the parent company of Creehan & Company, the leading independent provider of specialty pharmacy and specialty medications management software-as-a-service (SaaS) platforms.
About ABILITY Network Inc.
Established in 2000, ABILITY Network is a leading cloud-based Software-as-a-service (SaaS) technology company helping providers and payers simplify the administrative and clinical complexities of healthcare through innovative applications and data analytics. ABILITY is headquartered in Minneapolis with principal offices in Boston and Tampa.
About Inovalon Holdings, Inc.
Founded in 1998 and headquartered in Bowie, Maryland, Inovalon is a leading technology company providing cloud-based platforms empowering a data-driven transformation from volume-based to value-based models throughout the healthcare industry.
Stock Performance Snapshot
March 08, 2018 - At Thursday's closing bell, Inovalon Holdings' stock fell 1.18%, ending the trading session at $12.55.
Volume traded for the day: 840.59 thousand shares, which was above the 3-month average volume of 618.02 thousand shares.
Stock performance in the past twelve-month period - up 6.36%
After yesterday's close, Inovalon Holdings' market cap was at $1.79 billion.
Price to Earnings (P/E) ratio was at 97.29.
The stock is part of the Technology sector, categorized under the Healthcare Information Services industry. This sector was up 0.5% at the end of the session.
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