Nasdaq-listed Cognizant Technology Solutions Corp on 15 September 2014 acquired healthcare IT services provider TriZetto Corp for 2.7 billion US dollars. The acquisition is aimed at boosting the healthcare business of Cognizant.
Cognizant acquired TriZetto from London-based private equity firm Apax Partners LLP. Apax Partners acquired TriZetto in 2008 and was exploring a sale of the company.
Cognizant is expected to have revenue synergies of 1.5 billion US dollars over the next five years from this deal. Cognizant will fund the deal through a combination of cash and debt.
Cognizant Technology Solutions Corp
Cognizant Technology Solutions Corp provides services such as claims processing, billing and call center operations to insurers, hospitals. It also provides state-run healthcare exchange set up under President Barack Obama's Affordable Care Act known as Obamacare.
Cognizant's healthcare business accounted for about 26 percent of total revenue in 2013. However, it declined in the last three quarters.
When: 15 September 2014