(Bloomberg) -- Private equity firm Nordic Capital is in advanced talks on a potential acquisition of health-care 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 of Inovalon have risen about 80% this year through Monday, giving it a market value of about $5.1 billion. Inovalon jumped as much as 13% in pre-market U.S. trading Tuesday.
Inovalon, based in Bowie, Maryland, went public in 2015 in an initial public offering that raised about $685 million. 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 U.S. health plans as well as the world’s top 25 pharmaceutical companies, the company said. Inovalon is scheduled to report its second-quarter earnings on July 28.
Based in Stockholm, Nordic Capital has raised more than 1.2 billion euros ($1.4 billion) for a new fund intended to invest 35 million euros to 150 million euros in health care, technology and financial services firms across northern Europe.
On Monday, it agreed to invest in Dutch outpatient health-care provider Equipe Zorgbedrijven. That followed a roughly $846 million deal in June for speciality pharmaceutical company Advanz Pharma, and the agreement in March to acquire a stake in Danish dermatology firm LEO Pharma A/S.
Private equity firms have agreed $106 billion of acquisitions in the health-care sector globally this year, according to data compiled by Bloomberg. That’s up more than 300% on the same period in 2020, the data show.
(Updates with pre-market trading in the third paragraph. An earlier version of this story corrected a company name in the headline.)
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