Why Shares of Inovalon Are Soaring Today

Shares of cloud-based healthcare platform provider Inovalon (NASDAQ: INOV) jumped on Tuesday after the company announced that UnitedHealthcare, a business of UnitedHealth Group (NYSE: UNH), had signed a five-year deal to use its ONE platform. Inovalon stock was up 20% at noon, while shares of UnitedHealth were down about 0.7%.

UnitedHealthcare has entered a five-year engagement with Inovalon to implement the ONE platform. This deal is an expansion of the relationship between the two companies. Inovalon CEO Keith Dunleavy said this about the deal: "As the trend toward quality and value-based care models increases, the sophistication of the technologies needed to achieve meaningful and differentiated results has never been more critical to success. We are very pleased to be expanding our partnership with UnitedHealthcare, a clear industry leader, helping to support their data-driven approach to care quality."

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Source: Fool.com