Analytics firm Inovalon, which develops cloud-based intervention technology for payers, physicians and ACOs, will acquire Avalere Health, which provides advisory services and business intelligence tools to the pharmaceutical and life sciences industries.

The purchase price is $140 million: $135 million in cash and $5 million of restricted stock.

Avalere Health, which serves 13 of the top 15 pharmaceutical companies, will operate as a subsidiary of Inovalon – helping it offer broader and more powerful BI and analytics to "an expansive adjacent market."

In addition to pharma and life sciences companies, Avalere serves managed care companies, provider organizations and other healthcare organizations.


"The sea change taking place in our healthcare system from a volume-based and consumption-based healthcare model is impacting payers, providers and the pharma/life sciences landscape alike," said Inovalon CEO Keith Dunleavy, MD, in a statement.


"Data is transforming healthcare, and life sciences companies in particular need better information and analytics to drive commercial and strategic decisions," added Dan Mendelson, CEO of Avalere.