April 26, 2008 – (HOSTSEARCH.COM) – The TriZetto Group, Inc., (http://www.trizetto.com) whose services include hosting, is to be acquired by Apax Partners, it was announced recently. Under the terms of the agreement and plan of merger, TriZetto shareholders will receive $22.00 per share in cash, representing a 29% premium over the 30 calendar-day average closing price of the company's stock.
The transaction is valued at approximately $1.4 billion.
"The achievement of TriZetto's Integrated Healthcare Management vision is a multi-year journey that will require both conventional and non-conventional business investment within an integrated framework," said Jeff Margolis, TriZetto's chairman and CEO. "Payers are in the best position to lead the way towards fundamental industry improvements, and our technology solutions are essential in supporting that transformation. Apax Partners, which shares our strategic view of the marketplace, provides an outstanding opportunity to accelerate solutions development investments on behalf of our payer customers to create an integrated linkage among consumers, providers, employers and brokers."
"We see the confluence of healthcare and information technology as a key area of focus for strategic investments," said Buddy Gumina, a partner and head of U.S. healthcare at Apax Partners. "TriZetto represents a unique asset with a tremendous opportunity to drive positive changes in organized systems of healthcare, both in the U.S. and abroad. We look forward to helping the company accelerate the realization of its vision, and we are delighted to have the investment participation of two of TriZetto's key customers who have had a long history in working with the company and recognizing the strategic importance of IT as a critical component of adapting to the needs of the rapidly evolving healthcare landscape."
Bill Sullivan, a partner at Apax Partners, commented, "TriZetto is led by an outstanding management team that we know very well, and we are looking forward to working with them as our strategic partner on the next stage of the company's development. Furthermore, we are delighted to be investing in a company that straddles two of our core investment sectors, healthcare and technology."
TriZetto is “uniquely positioned to drive the convergence of health benefit administration, care management and constituent engagement”. The company provides premier information technology solutions that enable payers and other constituents in the healthcare supply chain to improve the coordination of benefits and care for healthcare consumers. Healthcare payers include national and regional health insurance plans, and benefits administrators that provide transaction services to self-insured employer groups. The company's payer-focused information technology offerings include enterprise and component software, hosting and business process outsourcing services, and consulting.
