Cognizant To Buy Trizetto Corp For $2.7 Bn Cash


CHENNAI: In an all-cash $2.7 billion deal, Nasdaq listed information technology (IT) company Cognizant announced its decision to acquire TriZetto Corporation.

In a statement, Cognizant said it has entered into a definitive agreement to acquire TriZetto for $2.7 billion in cash, subject to customary adjustments.

"Cognizant intends to finance the transaction through a combination of cash on hand and debt, and has secured $1 billion of committed financing in support of the transaction. The transaction is expected to close in the fourth quarter of 2014," the statement said.

The privately held TriZetto, based in Englewood, is a leading provider of healthcare IT software and solutions.

"Healthcare is undergoing structural shifts due to reform, cost pressure and shifting responsibilities between payers and providers. This creates a significant growth opportunity, which TriZetto will help us capture," Francisco D'Souza, CEO of Cognizant, was quoted as saying in the statement.

TriZetto and its 3,700 employees will be a part of Cognizant's existing healthcare business, which currently serves more than 200 clients including 16 of the top 20 U.S. health plans and four of the top five pharmacy benefit management companies.

Healthcare currently represents approximately 26 percent of Cognizant's revenue.

With more than $3 billion in combined healthcare revenue, Cognizant and TriZetto will serve nearly 245,000 healthcare providers (hospitals, clinics and others), as well as approximately 350 payers (health insurers) with approximately 180 million covered lives in the U.S.

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Source: IANS