US-based healthcare software producer TriZetto has been acquired by IT services company Cognizant Technology Solutions for $2.7bn, giving exits to healthcare insurer BlueCross BlueShield of Tennessee and non-profit healthcare company Cambia Health.
TriZetto provides IT services that enable payers and other parts of the healthcare supply chain to improve the coordination of benefits and care for healthcare consumers.
Following the takeover, TriZetto and its 3,700 employees will become part of Cognizant’s existing healthcare business.
TriZetto was acquired by private equity firm Apax Partners for $1.2bn in 2008, though BlueCross BlueShield of Tennessee and Cambia Health both held minority stakes at the time of the acquisition.
Jude Dieterman, president and chief operating officer of TriZetto, said: “Our agreement with Cognizant advances our vision of simplifying healthcare for everyone. We believe the combination of Cognizant and TriZetto’s talented employees and innovative technology and operations will have a meaningful impact on the way health is managed and care is delivered.”
Cognizant intends to finance the transaction through a combination of cash on hand and debt, and has secured $1bn of committed financing in support of the transaction, which is expected to close in the fourth quarter of 2014.