Cognizant Technology Solutions plans to acquire TriZetto for $2.7 billion.
“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,” said Francisco D’Souza, CEO of Cognizant.
“TriZetto solutions enable the healthcare interactions of millions of people in the U.S. every day,” said Jude Dieterman, President and COO of TriZetto.
“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.”
Founded in 1997, TriZetto, based in Englewood, Colo., develops and licenses information technology services for health care providers and health plans.
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.
The acquisition will be funded through a combination of cash and debt, including $1 billion secured through financing. The deal is expected to close in Q4 2014.
Cognizant is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses.It employs about 187,000 people and posted revenue of $8.8 billion in 2013.
