Private equity firm Nordic Capital is in advanced talks on a potential acquisition of healthcare technology company Inovalon Holdings Inc., according to people familiar with the matter.
A final agreement hasn’t been reached and discussions could still fall apart, said the people, who asked not to be identified because the information was private. Representatives for Nordic Capital and Inovalon didn’t immediately respond to requests for comment outside of normal business hours.
Shares in Inovalon have risen about 80 percent so far this year, giving it a market value of about USD 5.1bn.
Inovalon, based in Bowie, Maryland, went public in 2015 in an initial public offering that raised about USD 685m. The company’s software is used to aggregate and analyze health-care data from researchers and providers, according to its website.
Its database includes information from more than 1 million physicians, 580,000 clinical facilities and 336 million patients. The software is used by all of the top 25 US health plans as well as the world’s top 25 pharmaceutical companies, the company said.
Based in Stockholm, Nordic Capital has raised more than EUR 1.2bn (USD 1.4bn) for a new fund intended to invest EUR 35m to EUR 150m in healthcare, technology and financial services firms across northern Europe. On Monday, it agreed to invest in Dutch outpatient healthcare provider Equipe Zorgbedrijven.