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Forian Inc. acquires Kyber Data Science from TD Cowen

Published 11/01/2024, 09:06 PM
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NEWTOWN, PA - Forian Inc. (NASDAQ:FORA), a leader in healthcare and life sciences analytics, announced today its acquisition of Kyber Data Science LLC, a provider of data analytics and machine learning for the financial services sector. This move aims to enhance Forian's analytics capabilities and extend its reach into financial services.

Kyber, previously a part of TD Cowen, is recognized for its innovative use of healthcare data in the financial industry, assisting organizations in making informed investment decisions within the healthcare market. The acquisition brings together Kyber's advanced algorithms and software, designed for hedge funds and mutual funds, with Forian's extensive data resources and expertise.

Max Wygod, CEO of Forian, expressed enthusiasm about the acquisition, stating that Kyber's commercial intelligence will bolster Forian's growth strategy and innovation in the market. Jeff Forringer, CEO of Kyber, also welcomed the acquisition as an opportunity to expand Kyber's impact through Forian's platform.

Forian Inc. specializes in managing, integrating, and commercializing large-scale healthcare data, providing proprietary insights to optimize performance across the healthcare and life sciences industries. Kyber's addition is expected to enhance Forian's offerings to its core customer base while also providing new value to financial industry clients.

The press release also contains forward-looking statements, cautioning that actual results could vary due to risks and uncertainties. The full impact of the acquisition on Forian's operational and financial performance will unfold over time, and the company cautions against placing undue reliance on these forward-looking statements.

This strategic acquisition is based on a press release statement and represents a significant step for Forian Inc. as it continues to grow and diversify its services within the healthcare information marketplace.

In other recent news, Forian Inc., a healthcare data analytics firm, reported a steady Q2 2024 revenue of $4.8 million, mirroring the previous year. The company, however, experienced a net loss of $2.5 million and a modest adjusted EBITDA of $0.08 million due to funding challenges faced by early-stage clients and disruptions in the data supply chain. Despite these setbacks, Forian maintains a strong cash and marketable securities position of $48 million, offset by $24.2 million in convertible notes. Looking forward, the company anticipates its full-year 2024 revenue to range between $19 million and $20 million, with an adjusted EBITDA potentially breaking even. In a bid to bolster growth, Forian is actively exploring corporate development opportunities, including partnerships and strategic transactions. These recent developments underscore Forian's resilience and strategic focus on growth amidst industry-wide challenges.

InvestingPro Insights

As Forian Inc. (NASDAQ:FORA) expands its analytics capabilities through the acquisition of Kyber Data Science LLC, investors may find additional context in the company's financial metrics and market position. According to InvestingPro data, Forian's market capitalization stands at $64.07 million, reflecting its current scale in the healthcare analytics sector.

The company's revenue for the last twelve months as of Q2 2023 was $20.37 million, with a revenue growth of 6.97% over the same period. This growth, albeit modest, aligns with Forian's strategic moves to enhance its service offerings and market reach, as evidenced by the Kyber acquisition.

InvestingPro Tips highlight that Forian holds more cash than debt on its balance sheet, which could provide financial flexibility as it integrates Kyber and pursues further growth opportunities. Additionally, the company's liquid assets exceed short-term obligations, potentially indicating a strong position to fund its expansion plans.

It's worth noting that while Forian is trading at a high earnings multiple, it's also trading near its 52-week low, which may present an interesting dynamic for investors considering the company's growth prospects following this acquisition. Analysts predict that the company will be profitable this year, which could be a positive sign as Forian works to leverage Kyber's capabilities in the financial services sector.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 5 more InvestingPro Tips available for Forian, which could provide valuable perspective on the company's financial health and market position as it executes its growth strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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