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Cognizant To Buy Healthcare IT Services Firm TriZetto Corp [DealCurry (India)](DealCurry (India) Via Acquire Media NewsEdge) Cognizant Technology Solutions is acquiring US based healthcare IT services provider, TriZetto Corp for $2.7 Bn in cash from PE firm Apax Partners LLP and other minority shareholders. The company plans to finance the transaction through cash in hand and debt, and has secured $1 Bn of committed financing in support of the transaction. Post the deal, TriZetto and its 3,700 employees will be a part of Cognizant's existing healthcare business. The transaction is expected to close in the fourth quarter of 2014. The buy is targeted to boost the healthcare business of the company. The business accounted for about 26 % of Cognizant's total revenue in 2013 and has declined in the last three quarters. The combined entity will be more than $3 Bn in health-care revenue serving 245,000 health-care providers and payers who cover about 180 Mn people in the U.S. The company expects $1.5 billion in potential revenue synergies over the next five years. TriZetto which provides IT services including care management and the administration of benefits to health-care providers was bought by Apax Parnters, along with minority owners BlueCross BlueShield of Tennessee and Cambia Health Solutions, in 2008. As per reports 12-month EBITDA was more than $190 Mn as of June 30. Credit Suisse, UBS Securities LLC and Centerview Partners advised Cognizant, while J.P.Morgan Securities LLC and Goldman Sachs & Co advised TriZetto. Recently Azim Premji led Wipro Limited had acquired the IT services business of Canadian logistics and utilities firm, ATCO for $195 Mn (c.INR 11.7 Bn). (c) 2014 EagleEye Research & Media Pvt. Ltd. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |