TriZetto Agrees to Going-Private Deal

NEWPORT BEACH, Calif.
Dollar & Gold News, AP - 2 years ago

Medical software company TriZetto Group said Friday it agreed to a $1.4 billion takeover by private equity firm Apax Partners.

Stockholders will receive $22 per share in cash, a 25 percent premium to Thursday's closing price of $17.67.

The total price includes consideration for stock options and shares related to the company's outstanding convertible notes. The stock-only portion of the deal is worth a total of $943.7 million, based on 42.9 million shares outstanding in mid-February.

BlueCross BlueShield of Tennessee and The Regence Group, both TriZetto customers, are providing some funding for the transaction and will be equity investors in the company.

TriZetto Chairman and Chief Executive Jeff Margolis said the deal is an opportunity to accelerate its software development investments.

TriZetto's board has approved the buyout, which is subject to shareholder and regulatory approvals. The deal is expected to close in four to six months. TriZetto does not expect its products, staffing or facility locations to change.

RBC Capital Markets is the exclusive debt underwriter on the deal. Deutsche Bank Securities was Apax Partners' financial adviser and TriZetto was advised by UBS Investment Bank. BlueCross BlueShield of Tennessee and Regence were advised by Cain Brothers and Co.