March 7, 2018 / 2:18 PM / 4 months ago

BRIEF-Inovalon To Acquire ABILITY Network For ‍$1.2 Billion

March 7 (Reuters) - Inovalon Holdings Inc:​

* INOVALON TO ACQUIRE ABILITY NETWORK

* INOVALON HOLDINGS - DEAL FOR ‍AGGREGATE CONSIDERATION OF $1.2 BILLION IN CASH AND RESTRICTED STOCK​

* ‍TRANSACTION IS EXPECTED TO BE ACCRETIVE TO INOVALON’S NON-GAAP DILUTED NET INCOME PER SHARE IN 2018​

* DEAL FOR $1.2 BILLION, COMPRISED OF $1.1 BILLION IN CASH AND $100 MILLION IN RESTRICTED INOVALON STOCK​

* ‍ WILL FINANCE DEAL THROUGH 7.6 MILLION SHARES OF RESTRICTED EQUITY, CASH ON HAND, AND BORROWINGS FROM A NEW $980 MILLION TERM LOAN​

* ‍MORGAN STANLEY SENIOR FUNDING, INC. IS PROVIDING FINANCING COMMITMENT FOR ACQUISITION AND WILL LEAD FINANCING​

* SEES ‍ 2018 REVENUE $568 MILLION TO $593 MILLION​

* SEES ‍2018 DILUTED NET LOSS PER SHARE OF $0.03 TO NET INCOME PER SHARE OF $0.02​

* SEES ‍ 2018 NON-GAAP EARNINGS PER SHARE $0.36 TO $0.42​

* INOVALON HOLDINGS - ‍CO WILL CONTINUE TO HAVE STRONG LIQUIDITY WITH ABOUT $75 MILLION IN CASH, A PRO-FORMA NET DEBT TO ADJUSTED EBITDA RATIO OF ABOUT 4.1X AT YEAR-END 2018​

* DEAL UNANIMOUSLY APPROVED BY INOVALON AND ABILITY BOARDS​

* DEAL IS NOT SUBJECT TO A FINANCING CONTINGENCY OR APPROVAL BY CO’S STOCKHOLDERS​

* FY2018 EARNINGS PER SHARE VIEW $0.34 — THOMSON REUTERS I/B/E/S Source text for Eikon: Further company coverage:

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