Analytics-based U.S. tech firm Inovalon files for IPO

By Reuters

Dec 30, 2014 10:26 PM EST

Inovalon Holdings Inc, an analytics and data-based technology service provider to the healthcare sector, filed with U.S. regulators on Tuesday to raise up to $500 million in an initial public offering of Class A common stock.

Goldman, Sachs & Co, Morgan Stanley & Co LLC and CitigroupGlobal Markets Inc are the lead underwriters of the IPO, the company told the U.S. Securities and Exchange Commission in a preliminary prospectus. (

The filing did not reveal how many shares Inovalon planned to sell or their expected price.

The Bowie, Maryland-based company intends to list its common stock on the Nasdaq under the symbol "INOV".

The company, whose data drives health plans, hospitals, physicians, patients, pharmaceutical companies, and researchers, counts U.S. drugstore chain operator Walgreen as one of its clients. (

Inovalon, which combines advanced cloud-based data analytics and data-driven intervention platforms to provide insights to the healthcare industry, served nearly 100 clients representing approximately 200 patient populations in 2014.

A January 2013 McKinsey & Company report estimates that utilizing data analytics could drive improvements in healthcare resulting in a beneficial economic impact of $300 billion to $450 billion annually.

Inovalon reported net income of $51.9 million for the nine months ended Sept. 30, 2014, up from $27 million a year earlier.

The company competes with IT solutions providers such as Oracle, IBM, IT consultants such as Accenture and Deloitte Consulting, healthcare-specific solutions providers such as McKesson, OptumHealth, Truven and point solution providers such as DST Health and Alere.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

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