Related Items
TriZetto’s Price: $1.4 Billion
April 11, 2008
Private equity firm Apax Partners will acquire health payer software vendor The TriZetto Group Inc. for $1.4 billion. Newport Beach, Calif.-based TriZetto in 2007 had net income of $28.1 million on revenue of $451.8 million.
Two TriZetto customers--BlueCross BlueShield of Tennessee and the Regence Group--are providing an undisclosed portion of the funding for the acquisition and will be equity investors in the newly private company.
The $22 per share price being paid for TriZetto is 29% higher than the stock’s average closing price during the past 30 days and 24.5% higher than its $17.67 close on April 10. The stock opened more than 17% higher on April 11 at $20.75 per share.
New York-based Apax Partners has offices in 10 nations. Its health care holdings include several overseas hospital chains, specialty and generic pharmaceutical firms, a regional laboratory network in the United States, and a surgical and wound care products manufacturer.
TriZetto’s core products are administrative information systems that health insurers use to process claims, enrollment and related transactions and conduct business operations. Its Facets system is designed for larger insurers, and its QNXT system is targeted at smaller payers. The company also sells the Care Advance care management software and Web portal applications.
TriZetto’s senior executives have a goal of opening up the silos of information stored in its information systems and enabling insurers to push out the data to members, providers, employers and others to help improve the quality and efficiency of care. Becoming a private company will give executives more flexibility to execute the vision, called Integrated Healthcare Management, according to a spokesperson. Publicly held companies often think in terms of the next three months, while TriZetto now will be able to take a long-term view, the spokesperson adds.
The acquisition is expected to close in four to six months. More information is available at trizetto.com and apax.com.
Business Intelligence Archive
Data Repositories Archive
Revenue Cycle Management Archive
Vendor News Archive
Payers Archive
I.T. Spotlights
- About Us
- Advertising/Media Kit
- Reprints
- Editorial Calendar
- Contact Us
- Customer Service
- Privacy Statement
©2008 HealthDataManagement and SourceMedia, Inc. All rights reserved.
SourceMedia is an Investcorp company.
Use, duplication, or sale of this service, or data contained herein, is strictly prohibited.
