Acquisition of Inovalon Holdings, Inc. (INOV) by Nordic Capital and Others May Not Be in Shareholders’ Best Interests
According to the Proxy Statement released on September 17, 2021, Inovalon Holdings, Inc.’s board of directors approved a merger agreement with, among others, Nordic Capital X, and Inovalon’s CEO and founder Keith Dunleavy, M.D. (the “Investor Consortium”), who currently owns and controls 64% of Inovalon’s outstanding stock. Under the terms of the agreement, the Investor Consortium will acquire Inovalon in a going private merger and each Inovalon shareholder will receive just $41.00 per share in cash in exchange for each share of Inovalon. The deal is valued at approximately $7.3 billion and is expected to close in late 2021 or early 2022. Upon completion of the transaction, Inovalon will become a private company, with Dr. Dunleavy continuing as a substantial shareholder and retaining his positions as a board member and CEO. Robbins LLP is concerned that Inovalon’s board of directors engaged in an unfair process and agreed to an unfair amount to be paid to shareholders.
Inovalon Holdings, Inc. (INOV) Shareholders Have Legal Options.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.