What did Inovalon Holdings, Inc pay for Ability Network Inc.?

Inovalon Holdings, Inc acquired Ability Network Inc. for $1.19B in 2018 (16.5x EBITDA), equivalent to 9.20x revenue. Target revenue was approximately $130.0M. Target EBITDA was approximately $72.1M.

What does Ability Network Inc. do?

Ability Network Inc. is a healthcare it business.

What multiple did Inovalon Holdings, Inc pay for Ability Network Inc.?

16.5x EBITDA and 9.20x revenue, based on disclosed deal value of $1.19B and disclosed financials.

M&A TRANSACTION · 2018

Ability Network Inc. acquired by Inovalon Holdings, Inc

$1.19B· 16.5x EBITDA· 9.20x revenue

Target

Ability Network Inc.

Acquirer

Inovalon Holdings, Inc

Strategic buyer

Disclosed financials at time of acquisition

Revenue

$130.0M

EBITDA

$72.1M

Deal Value

$1.19B

EV/EBITDA

16.5x

Context

This $1.19B acquisition of Ability Network Inc. by Inovalon Holdings, Inc sits in the healthcare it sub-vertical. The 16.5x EBITDA multiple paid in 2018 can be compared against the population median for healthcare it transactions of similar size on our Healthcare It valuation hub. Inovalon Holdings, Inc is acquiring as a strategic buyer; see how strategic acquirers typically price healthcare it businesses on our Healthcare It strategic buyer-pool page.

Source

Data sourced from SEC filings and press releases. All figures reflect disclosed values at the time of the acquisition; no estimated or imputed data. Methodology

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Citation: ExitValue.ai. (2018). Ability Network Inc. acquired by Inovalon Holdings, Inc. https://exitvalue.ai/deals/ability-network-inc-acquired-by-inovalon-holdings-inc-hc-2018-0176