The acquisition will create a fully-integrated healthcare technology and operations leader, positioning Cognizant to address the rapidly-changing healthcare marketplace -- currently 17 percent of U.S. gross domestic product (GDP)-- with next-generation solutions that increase efficiency, reduce costs and improve healthcare outcomes.

Cognizant expects this acquisition to accelerate significantly its market position and strategy of delivering innovative healthcare software and solutions to a wide range of healthcare clients.

TriZetto brings to Cognizant significant and complementary new market opportunities, expertise and intellectual property, including multiple industry-leading software platforms used by payers and providers; enhanced competitiveness in integrated engagement opportunities; approximately $1.5 billion of potential revenue synergies cumulatively over the next five years and attractive non-linear software revenue.

"Cognizant and TriZetto have had a long-term relationship, having jointly served a number of healthcare clients to date," said Gordon Cobura, president of Cognizant.

"This acquisition is a natural fit for us. It represents a great opportunity to integrate services across our three horizons-traditional IT services; high-growth businesses such as management consulting, business process services and IT infrastructure services; and emerging delivery models-and provide even greater value to our clients," he added.

With approximately $2.5 billion in annualized revenue, Cognizant serves 28 of the top 30 global pharmaceutical companies, 16 of the top 20 health plans in the U.S., 4 of the top 5 pharmacy benefit management companies in the U.S., 9 of the top 10 biotech companies, and 12 of the top 15 medical device companies.

"The transaction is expected to be immediately accretive to Cognizant's non-GAAP EPS, excluding one-time transaction costs and adjustments," Karen McLoughlin, CFO, Cognizant, was quoted in the statement.

TriZetto is currently owned by Funds advised by Apax Partners, together with minority investors BlueCross BlueShield of Tennessee and Cambia Health Solutions.

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