Cognizant, a NJ-based business process outsourcing company announces plans to buy TriZetto Corporation in a $2.7 billion dollar cash deal.
Cognizant’s healthcare operations currently make up about 26% of the company’s revenue. The acquisition will help to grow that stream even further.
Francisco D’Souza, CEO of Cognizant in a statement said that, “Healthcare is undergoing structural shifts due to reform, cost pressure and shifting responsibilities between payers and providers. This creates a significant growth opportunity, which TriZetto will help us capture. We are excited that the integrated portfolio of capabilities across technology and operations will uniquely position us to help clients drive higher levels of operational efficiency, while re-imagining care for the future. We look forward to welcoming the TriZetto team into the Cognizant family and creating a truly differentiated and sustainable foundation for healthcare.”
Cognizant and TriZetto have had a long-term relationship, and is looking forward to integrating services across both businesses.
The transaction is expected to close in the fourth quarter of 2014.
Read the official press release here
