Daily News: March 7, 2018

Morgan Stanley Supports Inovalon ABILITY Acquisition

Healthcare tech company Inovalon agreed to acquire ABILITY® Network for an aggregate consideration of $1.2 billion in cash and restricted stock.

The transaction is expected to close in April 2018, subject to customary closing conditions and regulatory approvals, and will be financed through 7.6 million shares of restricted equity, cash on hand, and borrowings from a new $980 million term loan provided by Morgan Stanley Senior Funding.

The term loan facility will also be used to pay off and replace the company’s existing credit facility indebtedness.

ABILITY is a cloud-based software-as-a-service technology company that provides core connectivity, administrative, clinical, and quality analysis, management, and performance improvement capabilities to more than 44,000 acute, post-acute and ambulatory point-of-care provider facilities.