Cognizant Technology Solutions Corp. said Monday that it agreed to acquire TriZetto Corp. for $2.7 billion in cash to gain more market share in healthcare technology services, WSJ reports. The combined company will have more than $3 billion in healthcare revenue, as well as an additional $1.5 billion in potential revenue over the next five years. Currently, healthcare accounts for 26% of Cognizant’s revenue totaling $8.84 billion last year. The deal is expected to close in the fourth quarter.
TriZetto develops, licenses and manages solutions for healthcare payers and providers, providing software and services to approximately 350 health plans helping to increase administrative efficiency, improve the cost and quality of care and succeed in the retail market. Additionally, the Company provides revenue-cycle management software solutions to nearly 245,000 doctors and other healthcare providers. The company was bought by Apax Funds in 2008 along with minority investors BlueCross BlueShield of Tennessee (“BCBSTN”) and Cambia Health Solutions (“Cambia”).